Recently, Binance, the leading global cryptocurrency exchange, made public its decision to remove five trading pairs—GFT/USDT, IRIS/USDT, KEY/USDT, OAX/USDT, and REN/USDT. This move has caused a surge of volatility in the market, resulting in sharp declines in the prices of the affected tokens.
The delisting, scheduled for December 10, 2024, has sparked renewed debates surrounding the implications of such actions on smaller digital assets and the wider trading community.
Examining Price Fluctuations Closely
The announcement of delisting has led to substantial drops in the prices of the tokens involved. GFT/USDT witnessed a decrease of more than 30% within 24 hours, with its RSI standing at approximately 28.71, indicating an oversold status. Additionally, MACD signals underscored a pronounced bearish trend, contributing to the prevailing negative market sentiment.
IRIS/USDT saw a 25% decline and traded below its 50-day moving average. The RSI for IRIS was recorded at 28.74, reflecting a situation of overselling, while the widening bearish divergence depicted by the MACD further dimmed prospects for short-term recovery.
The impact on KEY/USDT was most severe, plummeting by nearly 40% post the announcement. Its RSI dropped to 34.03, and the MACD trends pointed towards a significant bearish trajectory, instilling caution among traders regarding a potential further decline.
OAX/USDT also faced a considerable drop, shedding close to 45% of its value. With an RSI of 26.76, the selling pressure on OAX was deemed extreme.
Similarly, REN/USDT experienced a 20% loss in value, with its RSI nearing 48.44, indicating an impending entry into the oversold zone.
The Wider Influence of Binance’s Delisting
Generally, Binance’s decisions to delist tokens are influenced by factors like low trading volumes, failure to meet technical standards, or regulatory issues.
Although the impacted tokens may not be major players, the reaction from the market underscores the susceptibility of lesser-known cryptocurrencies to actions taken by centralized exchanges.
Significantly, even larger altcoins such as Ripple (XRP) and Cardano (ADA) have encountered delisting or trading restrictions due to specific circumstances like regulatory scrutiny.
Future Prospects for the Affected Tokens
For the delisted tokens, the immediate future looks bleak. The absence of Binance’s liquidity and user base is likely to impede recovery efforts.
While many traders may shift to decentralized exchanges or other platforms, the lack of visibility and reduced liquidity often pose challenges for both price recovery and sustained adoption in the long term.