Ronin Plunges Nearly 30% After Binance Debut, Raising Concerns About Pre-Listing Hype
February 06 2024 - 12:00PM
NEWSBTC
Ronin (RON), the token powering the Ronin Network, experienced a
rollercoaster ride in the past 24 hours, rallying to a two-year
high before crashing nearly 30% after its listing on Binance. This
dramatic price swing has raised questions about potential market
manipulation and the long-term viability of the project. Related
Reading: Market Dip? Not For Dogecoin Wallets As Over 400,000 New
Users Drive Frenzy Upward From Hero To Zero: A Short-Lived Rally On
February 5th, RON enjoyed a meteoric rise, surging 15% to reach a
peak of $3.54. This rally was fueled by investor optimism
surrounding the network’s growing user base and address activity.
Trading volume spiked to $80 million, signifying increased market
participation. However, the euphoria was short-lived. Coinciding
with the Binance listing announcement, the price began a
precipitous decline five hours after trading commenced on the
exchange. By today, RON has shed nearly 30% of its value, currently
trading at $2.54. This drop marks a breach of the crucial $3
support level, which the token had recently reclaimed after 14
months. Ronin currently trading at $2.7899 on the daily chart:
TradingView.com Negative Sentiment And Selling Pressure Mount
Social media sentiment surrounding RON mirrored the price action.
Santiment data (chart below) reveals a 250% increase in social
volume within 24 hours, but with a concerning shift towards
bearishness. Negative sentiment spiked from 0.87 to 5.58,
reflecting growing investor concerns. This negativity translated
into significant selling pressure, with 24-hour trading volume
soaring 275% to $203 million. Market participants, eager to offload
their holdings, contributed to the downward spiral. Source:
Santiment Related Reading: Crypto Winter In Spain? New Taxes Target
Digital Assets Binance Under Scrutiny: Pump And Dump Allegations
The timing of the price surge and subsequent crash has fueled
speculation of a “pump and dump” scheme, with some accusing Binance
of complicity. While no concrete evidence has surfaced, Yi He,
Binance’s co-founder, acknowledged the concerns and announced a $5
million bounty program to expose any corrupt employees involved in
such activities. Future Uncertain: A Cautious Outlook Despite the
recent setback, RON still stands at a 23-month high compared to
February 2022. However, the future remains uncertain. The sharp
drop, shifting sentiment, and potential manipulation allegations
have cast a shadow over the project’s prospects. Featured image
from Adobe Stock, chart from TradingView
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