Voyager Digital’s VGX token hits a new low as it gets demoted to Binance’s minor leagues
- Binance moved VGX to its Innovation Zone as the token becomes increasingly volatile.
- VGX experienced increased sell-offs in the past few weeks.
On May 10, Binance announced the movement of the native token of bankrupt crypto lender Voyager Digital [VGX] and some other tokens to its Innovation Zone. This decision was made as VGX’s token became increasingly volatile and risky to trade when compared to other listed assets on the cryptocurrency exchange.
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Binance’s Innovation Zone refers to a dedicated trading zone where users can trade tokens likely to have higher volatility and pose a higher risk than other tokens.
The move by Binance was made shortly after Voyager Digital announced the sale of its assets following the collapse of a deal with Binance.US.
In a court filing made on 5 May, the crypto lender’s lawyers confirmed that it would self-liquidate its assets and cease operations after failing to reach an agreement on a sale to either FTX US or Binance.US.
It added that its customers would receive an initial recovery of 36% of their crypto holdings.
In a later announcement made by the bankrupt crypto lender, Voyager stated that its customers could lay claims for additional recoveries,
“depending upon (the) resolution of the FTX/Alameda preference claim dispute, the success of any additional claims brought by the Voyager Plan Administrator against third parties, as well as any recovery by the Voyager estate as a creditor in the Three Arrows Capital liquidation.”
Does VGX have much to offer?
VGX exchanged hands at $0.1527 per token at press time. In the last 24 hours, the token’s value declined by 8%.
However, during the same period, its trading volume shot up by over 100%. This indicated the presence of buyers’ exhaustion in the market.
This price/trading volume divergence exists when an asset experiences a high liquidity exit. And the existing market buyers cannot initiate and sustain any price rally.
An assessment of VGX’s price movements revealed a price decline since the end of April. Since then, the token’s value has plummeted by over 50%.
As selling pressure outweighed accumulation, VGX was significantly oversold at press time. Its Relative Strength Index (RSI) was at 18.23. Also positioned far from its 50-neutral spot, the alt’s Money Flow Index (MFI) was 27.53.
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Further, with increased liquidity exit and lack of new demand required to drive up VGX’s value, its Chaikin Money Flow (CMF) fell beneath its center line to return a negative value of -0.42 at press time. A negative CMF indicates that an asset’s selling pressure is stronger than its buying pressure.
Lastly, buyers were in control of the market at press time and was in control since 24 April. According to VGX’s Directional Movement Index (DMI) indicator, sellers’ strength (red) at 34.54 was solidly above the buyers’ (green) at 10.92.