By
Kseniia Klichova
June 20th, 2024
Recent price action from privacy-focused cryptocurrency Monero (XMR) suggests that the token may finally be rising from the ashes.
This follows after XMR price gained nearly 25% over the past month, clawing its way back up from a February slump caused by a delisting from major crypto exchange Binance. Notably, XMR’s gain over the past month means that it has outperformed the broader cryptocurrency market by a large margin (XMR price data).
XMR Shows Resilience Despite Regulatory Challenges
As earlier stated, XMR suffered a major hit in early February following reports that Binance had delisted the token. At the time, Binance cited that its reasons for delisting bordered on regulatory concerns, particularly in the area of anti-money laundering (AML) laws. This immediately had a daunting effect on the token, causing it to plummet over 35% to $100. Not only did the value nosedive, there were also concerns within the privacy coin community over XMR’s future.
In a remarkable turn of events, however, XMR appears to have turned its fortunes around. Over the past four months, the token has steadily recovered lost ground, recently surpassing $180, its highest level since January.
While it has retraced its steps a bit, XMR still trades at $171 as of publication, up 1.38% in the last 24 hours according to CoinMarketCap data.
This impressive comeback signals growing investor confidence in XMR despite its issues with regulatory bodies.
Possible Catalysts for the Ongoing Rally
It must be said that the exact reason behind XMR’s seeming rebirth can not be pinpointed. However, several factors might be playing a part in its positive price action.
Firstly, many are of the opinion that the recent crackdowns on Botnet mining in European countries is partly responsible for the good times XMR currently enjoys. Botnets, networks of compromised computers, are often used to mine cryptocurrencies like XMR. This is so because of the privacy features of XMR that make it a preferred choice for cybercriminals. With stricter enforcement against botnet mining, however, the overall supply of XMR might be reduced, potentially leading to a price increase.
Also, there is the decision by major mining pool 2Miners to stop mining XMR. The pool’s exit could be another major influence on XMR’s tightening supply, further contributing to the recent price rally.
More Bullish Signs?
At the moment, XMR price is yet to break out of its established trading range, but technical indicators suggest that there is room for that. The formation of a “golden cross” on XMR’s price chart is a well-recognised pattern, which usually signals a shift in momentum towards the long term.