They could have been re-testing their bottom again, almost all altcoins are still way below of their previous all time high, I'm guessing around 70%-80%. As for Monero, let's face it, it is a privacy coin that individuals or bad actors can exploit to their advantage. And this is one downside of Monero, because we all know that governments are tightening on everything that is related to crypto. And this could be one reason why investors doesn't want to take risk and invest on any privacy coin, IMHO.
I believed that Monero went on another big test this year already and had retested it's bottom or lower lows for this year already. But with this news though I don't think that it will have a significant effect on the price because they have quickly quelled the news.
Now looking at the current price, it is still in the 2 digit, still a good coins for me to invest despite several government attempts to stop this coin. This is a privacy coin, and as such they are really doing a good action for the community. And amongst privacy coin out there, they are still the best no doubt about that.