Listing and delisting on one of the major crypto exchanges, Binance, have always had a certain impact on the prices of the cryptos. This has been widely seen in the past when the prices of popular memecoins like Shiba Inu, Pepe, etc. and many more surged remarkably. However, Monero, a popular privacy-focused token, experienced a substantial drop in price as well as trading volume right after Binance announced its decision to delist the token.
The announcements were not accepted wholeheartedly, as some of the influencers heavily criticized the move. Soon after the move, the XMR price began to drop heavily, close to $100, which was trading stagnantly above $160. With this, the market participants became extremely bearish on XMR as an acute rise in the open interest (OI) was recorded soon after the move.
After delisting from Binance, there was a 280% increase in open interest, with the funding rates going deeply into the negative. The rise in the OI indicates new money is flowing into the markets, due to which the current trend may continue to prevail. Meanwhile, the funding rate going negative indicates disbelief among the traders, as they are confident of the rally experiencing a more downward trend in the coming days.
The XMR price has dropped by nearly 40%, while the bulls have managed to recover half of it. Besides, the technicals do not appear to be in the bullish favour, and hence the token could experience more downfall in the coming hours. However, the mounted short positions could be liquidated soon, which may offer a sigh of relief and produce the required volume to move towards its initial levels.
