TRX suffers after Binance announced delisting amid Sun’s legal troubles
The Tron network stood at the brink of a rude awakening after Binance revealed that TRX would be among the cryptocurrencies to be delisted from the exchange. The announcement had a negative impact on TRX demand based on the market’s reaction.
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The U.S division of Binance made the announcement as part of its latest review. Investors should note that the delisting will only affect TRX’s availability on Binance U.S.
In other words, it will remain accessible via the international version. The delisting means Binance users in the U.S will no longer be able to trade, deposit, withdraw or stake TRX. However, the official delisting will take place on 18 April.
Breaking: BinanceUS will delist Spell (SPELL) & TRON (TRX). TRON (TRX) Staking will also be disabled on April 13. TRON founder Justin Sun was sued by US SEC in March. https://t.co/tFFeht8PbA
— Wu Blockchain (@WuBlockchain) April 12, 2023
Binance did not reveal the exact reason for delisting TRX. However, it listed a few possible reasons for which it delists assets. They include changes in a digital asset’s risk profile, unethical or fraudulent and regulatory issues among others. Interestingly, Tron’s CEO Justin Sun was reportedly arrested recently following fraud investigations by the SEC.
Assessing the impact of the TRX delisting
A look at TRX’s price action in the last 24 hours revealed that the delisting made a clear impact. For instance, TRX fell by as much as 8% from its 7-day peak $0.0679 to $0.0621, the lowest price point in the last 24 hours at press time. A drastic departure from the previously bullish performance observed in the last 2 weeks.
TRX’s money flow indicator demonstrated a sudden shift in the last 2 days, highlighting the sudden liquidity outflows. Also, the price dip pushed the RSI below the RSI mid-level, lending favor to the bears. But will the bears continue to push down further?
Sun stated that the U.S delisting wasn’t expected to have a large impact on Tron and TRX. The crash was likely softened by the fact that the delisting will only affect U.S customers, hence international customers will continue having access to TRX.
The Binance delisting had a significant impact on the demand for TRX in the derivatives market. This was evident by the large dip in the Binance funding rate. Its market cap tanked by roughly $400 million in the last 2 days.
Despite the dip, the market cap indicated some recovery, hence confirmation that there was significant buying pressure. This suggested that the market had already absorbed the impact. The latest weighted sentiment metric readings indicated that there was still some bullish confidence in the market.
How many are 1,10,100 TRXs worth today
In addition to the prevailing investor confidence, Tron also maintained healthy development activity. This may further contribute to the confidence boost. However, there is still some risk of more downside if Tron’s current concerns expand outside the U.S and into the global arena.