Journalist
Posted:
- XMR is down almost 10% in the last 24 hours.
- The currency’s financing rates have turned negative for the first time in two months.
Money [XMR] has fallen nearly 10% in the past 24 hours following OKX’s decision to remove 20 trading pairs, including the prominent privacy coin.
In a announcement on December 29, the leading exchange noted that it had decided to delist the trading pairs because the crypto assets “do not meet our listing criteria.”
Other assets affected by this move include Kusama [KSM]Current [FLOW]Just now [JST]Kyber Network Crystal [KNC]Aragon [ANT]Fusion [FSN]ZKSpace [ZKS]Kapo [CAPO]PowerPool [CVP]Dash [DASH]ZCash [ZEC]and Horizen [ZEN].
Demand for XMR is falling
At the time of writing, XMR was exchanging hands at $165.48. With a price drop of 6% in the last 24 hours, the coin ranks third with the most losses in that period, according to data from CoinMarketCap.
As can be seen from the price movement within a 12-hour chart, the decline in value of XMR was due to a decrease in accumulation among traders. At the time of writing, the key momentum indicators were below their respective midlines.
Source: XMR/USD on TradingView
For example, XMR’s Relative Strength Index (RSI) was 36.77. Additionally, the Money Flow Index (MFI) returned a value of 38.05.
These indicators showed that the sell-off of coins exceeded the accumulation as traders shed their XMR holdings, given OKX’s move.
The bearish sentiment is confirmed by XMR’s Directional Movement Index (DMI) readings, which place the negative directional index (red) above the positive directional index (green).
In an uptrend at the time of writing at 23.42, XMR’s negative directional index showed bears controlling the 12-hour chart.
Furthermore, XMR’s MACD line was spotted below the trend line and below zero at the time of writing. When an asset’s MACD line crosses below the trend line and falls below zero, it is generally interpreted as a bearish signal.
Many traders view this sub-zero crossover as a sell signal, as it indicates that downward momentum could continue.
Short traders benefit from this
As the price decline continues, short traders in the XMR futures market have re-entered the market.
According to data from Mint glassthe currency’s derivatives market has seen a 109% growth in trading volume and a 23% increase in open interest over the past 24 hours.
Read Monero’s [XMR] Price forecast 2023-24
However, for the first time since October 30, the coin’s Funding Rate is negative on all exchanges.
Source: Coinglass
When the financing rate of an asset is negative, this means that holders of short positions pay a fee to holders of long positions. This suggests that a greater proportion of traders believe the price will fall in the future.