Monero Price Drops Below $150 As Kraken Removes XMR From Europe Amid Regulatory Changes

• The price of Monero dropped by over 10% after Kraken announced that it was withdrawing XMR transactions in Europe.
• Monero price broke below the key support level at $152.83 on Tuesday, signaling the continuation of the bearish trend.
• XMR’s long-short ratio supports the bearish outlook, but a close above $156.48 would increase the chances of a recovery.

Monero (XMR) is showing weak trading in the red on Wednesday after losing over 6% the previous day. XMR fell over 10% at one point on Tuesday following Kraken’s announcement that it was withdrawing XMR trading from Europe, which supported this bearish move. Additionally, XMR’s long-short ratio shows that several traders anticipate the Monero price to fall.

Monero is removed from the Kraken exchange in European countries

On Tuesday, Kraken Exchange notified its users that it will remove Monero from the European Economic Area (EEA) due to regulatory changes. As a result, Monero closed more than 6% lower on Tuesday, after losing up to 10% earlier in the day.

Kraken said: “On October 31st, we will stop trading and deposits on all XMR markets (XMR/USD, XMR/EUR, XMR/BTC, XMR/USDT) for customers registered in the EEA. Any open XMR orders will also be automatically closed at this time.”

He went on to say that the deadline for withdrawing XMR is December 31st. If any customer has an XMR balance after this date, their XMR will be automatically converted to BTC by Kraken at the market rate.

Monero price action shows weakness

Monero price broke below the downtrend line (drawn by joining multiple lows since early August) on September 24 and is down 14.5% in a week. On Tuesday, it also closed below its 61.8% Fibonacci retracement level at $152.83 (drawn from an early August low of $135.98 to a September high of 180, $10). At the time of writing on Wednesday, it continues to trade lower around $144.96.

If the 61.8% Fibonacci retracement level at $152.83 holds resistance, it could continue the decline to retest the August 5 low of $135.98.

The MACD (Moving Average Convergence Divergence) indicator further supports Monero’s decline and signals a bearish crossover on the daily chart. It also shows rising red histogram bars below the neutral zero line, suggesting continuation of the strong bearish momentum.

XMR/USDT Daily Chart

Coinglass’ long-short ratio further supports Monero’s bearish outlook, standing at 0.9. This below-one ratio reflects bearish sentiment in the market as more traders are betting on lower asset prices.

Monero Long to Short Chart

Despite the exclusion of Monero from the Kraken exchange, bearish price action and weak on-chain value, the bearish outlook would be invalidated if Monero’s daily candlestick breaks above $152.83 and closes above the 200-day EMA at 156 .47 USD. This scenario could see Monero price rise to retest the next daily resistance at $180.79.