Why Is Monero Down Today?

The King of Privacy Under Siege

With global crypto compliance actions like the EU’s Markets in Crypto-Assets (MiCA) regulation aimed at tightening rules around Privacy-focused coins like Monero and several major exchanges like Binance and OKX, removing privacy coins from their listings, Monero’s latest price pump suggests otherwise.

Despite this, Monero has been rising. Could this resilience in Monero’s price signal that investors are betting on privacy coins surviving or even thriving despite growing regulatory crackdowns?

Monero is often regarded as the king of privacy tokens; the token’s protocol is heavily built around powerful cryptographic techniques like ring signatures, stealth addresses, and confidential transactions, which make its transactions (including amount, sender’s, and receiver’s addresses) effectively anonymous.

Although the demand for privacy-based projects like Monero is high, its untraceability has made the project a target for regulators. Government authorities worry about the inability to track the cryptocurrency, with the view that it can be used for money laundering, tax evasion, and other illicit financial activities

Recently, Monero saw a strong resurgence; its price shot up to nearly 40% in a single day, with trading volume jumping from an average of approximately $50 million to over $220 million. On November 5, XMR reached a five-month high of $378, up 9% in 24 hours, fueled by a sector-wide privacy coin rally and a cascade of liquidations on leveraged short positions. This surge has drawn attention not just for its technical strength but also for speculation around on‐chain activity.

Meanwhile, Monero has become a pariah on many of the best crypto exchange platforms, including Binance, OKX, and Kraken, which have delisted the ecosystem’s native token, XMR, citing compliance and regulatory risks.

This article will explore the reasons for Monero’s price drop today. We will examine the overwhelming impact of regulatory pressure, the general market downturn, and the technical picture for XMR.

The #1 Factor: The Regulatory Crackdown

Regulatory pressure on Monero’s XMR is the most significant factor affecting the token’s price. Major platforms, including tier 1 exchanges like Binance and OKX, have delisted XMR to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. The reason for this action is the private and untraceable nature of the Monero token, which regulators view as a compliance risk, forcing even multiple crypto exchanges to remove it to avoid penalties.

Its protocol uses advanced cryptographic techniques, including ring signatures, stealth addresses, and RingCT, to make transaction amounts, sender addresses, and receiver addresses untraceable on the blockchain.

While these features offer robust privacy protections and appeal to users who prioritize anonymity, they also subject the token to intense scrutiny from regulators worldwide.

Exchange Delistings

These delistings have real consequences. With fewer exchanges supporting XMR trading, buying and selling Monero becomes more difficult, crushing its liquidity. Lower liquidity not only makes transactions more cumbersome but also puts constant downward pressure on the price, as the market interprets each new delisting as a bearish signal.

According to the government of some jurisdiction, the idea behind the privacy token, such as Monero, is perceived as a threat because the protocol is packed with functionalities that allow users to mask their transaction activities on-chain.

Regulatory bodies in the US, EU, and Asia have expressed concern that privacy coins could facilitate illicit activities such as money laundering, terrorist financing, and tax evasion. This narrative creates a hostile environment for all privacy coins, keeping them off many mainstream platforms and limiting their adoption.

The Broader Market Sell-Off

Monero’s unique privacy features have created high demand, allowing the ecosystem to carve out its own path among billions of cryptocurrencies in the market. This uniqueness, however, does not make the project invincible to a major market-wide crash.

During periods of risk-off sentiment, when investors rush to reduce exposure to volatile assets, even dedicated Monero holders may be forced to sell and swap crypto to fiat in order to raise liquidity or cut losses. As a result, Monero’s price can fall in tandem with the broader crypto market prices, despite its unique privacy features. Historical data show that during sharp Bitcoin-led sell-offs, most altcoins, including privacy coins like Monero, experience significant declines.

Regulatory development also plays a crucial role in determining XMR’s next price move. For instance, exchanges delisting privacy coins to comply with the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations directly impact trading volume and accessibility, resulting in long-term consolidation phases. These major exchanges delisting XMR have negatively impacted the token, revealing how compliance can limit technological innovations.

The Technical Picture: A Chart in Decline

After rallying to heights of $470, with buyers excited about its recent uptrend. Traders are beginning to take profits from Monero. At the time of writing, the privacy-based coin is trading at $346.97. Monero has formed a trend reversal as traders take profit. On the weekly chart, XMR’s Relative Strength Index (RSI) currently sits at 56.16 in the positive territory, as the indicator tilts towards the neutral zone at 50, revealing a cooling momentum after weeks of aggressive buying.

Similarly, the Money Flow Index (MFI) currently stands at 57.84; although it is in the positive territory, the indicator doesn’t seem to be trending upwards; instead, it’s positioned downwards very close to the 50 neutral line. A decisive close below that threshold would strengthen the case for a deeper pullback, signaling that capital is steadily exiting the market.

If this trend continues, XMR could slip toward its next major support zone at $265.01.

XMR/USD Weekly Chart | Credit: TradingView

A closer look at the Fibonacci retracement level reveals that XMR’s price is currently trading within the 0.786 Fib level and is trending towards the 0.618 Fib Level at $329.79. Although XMR had previously gone below this level during earlier corrections, it managed to rebound sharply as buyers stepped back in.

This time, however, the momentum appears weaker. If the price slips below this level towards the 0.5 fib level at $285.18, a threshold that coincides with its immediate support zone, it would reveal a clear shift in the current market structure. Such a move will confirm that sellers are in control, pushing XMR back into a territory last seen during its pre-rally consolidation.

On the flip side, if XMR reverses from its current trend, the token could retake its former bullish stance and reach $393.30.

Delisting-Driven Price Drops

A major factor that has contributed to Monero’s continuous fall is its delisting across major exchanges because of the need for these exchanges to align with Anti-Money Laundering and Countering Financial Terrorism (AML/CFT) standards. For instance, OKX delisted XMR in December 2023, which led to the start of a major price decline.

Adding to this bearish momentum, in February 2024, Binance announced the delisting of Monero due to its untraceable transaction architecture and the exchange’s need to comply with AML/CFT regulations. The announcement triggered a sharp market reaction, causing XMR to drop roughly 30%. Monero fell from around $160–$166 to lows between $108 and $114, as traders rushed to exit positions ahead of the delisting.

In October 2024, Kraken announced that it would be delisting XMR for all customers of the European Union following the change of Europe’s new regulatory laws, which state that EU-regulated exchanges will be banned from offering or handling privacy coins like Monero and Zcash. This led to a further price plunge as XMR, which was at the time regaining bullish momentum, suddenly reversed, causing the privacy-based coin to enter lows of $0.0015 by December 2024.

However, after its 2024 low, the token has been recovering, especially because of the renewed interest in tokens like XMR, hence the recent uptick in price. This shows that despite the negative regulatory stance against Monero, the crypto is still standing and attracting the attention of users who value their privacy.

Conclusion: A Battle for Survival

Over the years, Monero has struggled to maintain relevance while several governmental bodies have hampered its growth. The privacy-based coin remains resilient, pushing through the odds and driving its narrative globally.

Recently, many investors have had to question how their data is being used and the negative impact it has had on them. In some cases, certain investors have faced attacks due to their exposure to less private digital assets, including targeted scams, phishing attempts, and even public scrutiny when their holdings become linked to identifiable personal information.

These concerns have gradually led to the demand for privacy-based coins, thus the recent spike in their use. Investors are using these protocols to transact and store value without having to fear external attacks or government surveillance. Monero’s anonymity tools, like stealth addresses, ring signatures, and RingCT, provide a layer of protection that traditional cryptocurrencies lack, giving investors greater confidence in their financial sovereignty.

However, these same features have adversely affected XMR, leading to stringent regulatory scrutiny against the cryptocurrency. Also, contributed to the delisting of Monero across large exchanges like Binance, OKX, and Kraken, causing heavy price dips and devaluation in relation to its Bitcoin pair, as well as limited access for its users, which has also contributed to lower liquidity levels.

Despite these challenges, Monero’s community remains active and strong, pushing the coin’s utility and adoption. More developers keep building on the protocol, emphasizing the importance of privacy in the digital economy. As regulators close in on the token, privacy-based coins are beginning to appear as a closed niche rather than an instrument that could fuel wide traction.

Still, investors who prioritize security and confidentiality consistently choose Monero. Its price trajectory will continue to depend on regulatory pressures, privacy demand, and market dynamics. Regulatory-compliant platforms Digitap help investors track such market shifts while managing portfolios in a safer, more organized environment.

FAQs (Frequently Asked Questions)

Is Monero a good investment?

It depends on your risk tolerance. Monero offers strong privacy features but faces ongoing regulatory pressure and repeated exchange delistings that limit liquidity and negatively impact its price. These factors make XMR a higher-risk asset compared to mainstream cryptocurrencies.

Why are exchanges delisting Monero?

Many exchanges delist Monero to comply with strict AML and KYC regulations that require transaction transparency. Because Monero’s design hides sender, receiver, and transaction amounts, it creates challenges for regulatory monitoring and oversight. While these privacy features benefit users who value anonymity, they also make regulators uneasy about potential misuse and illicit activity. As a result, some exchanges limit or remove XMR to avoid compliance risks.

Is Monero illegal?

No, Monero is not illegal in most countries. Some jurisdictions place restrictions on privacy coins due to compliance concerns, but the asset itself is generally legal to hold and use. Its privacy tools, such as stealth addresses and ring signatures, are designed to protect user anonymity, not to break laws. As with cash, the legality depends on how it’s used: illicit activity is illegal, but the technology itself is not.

Can Monero transactions be traced?

No, Monero is designed specifically to prevent transaction tracing. Features like ring signatures, stealth addresses, and RingCT hide the sender, receiver, and transaction amount. As of today, there is no confirmed public method for reliably deanonymizing Monero transactions.

What is the future of privacy coins?

Privacy coins face ongoing regulatory pressure, which may keep them restricted on major exchanges and limit liquidity and mainstream adoption. Despite this, demand for financial privacy remains strong, and coins like Monero could continue to thrive in decentralized, peer-to-peer, or non-custodial environments where regulatory oversight is less effective.