The Tron network was on the verge of a chill after Binance revealed that TRX would be one of the cryptocurrencies to be delisted from the exchange. The announcement negatively impacted demand for TRX based on market reaction.
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Binance’s US division made the announcement as part of its latest review. Investors should note that the delisting only affects the availability of TRX on Binance US
In other words, it remains accessible through the international version. The delisting means that Binance users in the US will no longer be able to trade, deposit, withdraw or wager TRX. However, the official delisting will take place on April 18.
Breaking: BinanceUS removes Spell (SPELL) & TRON (TRX). TRON (TRX) Strike will also be shut down on April 13. TRON founder Justin Sun was sued by the US SEC in March. https://t.co/tFFeht8PbA
— Wu Blockchain (@WuBlockchain) April 12, 2023
Binance has not revealed the exact reason for TRX’s deletion. However, it listed some possible reasons why assets were removed from the list. They include changes in a digital asset’s risk profile, unethical or fraudulent and regulatory issues, among others. Interestingly, Tron CEO Justin Sun was reportedly recently arrested following fraud investigations by the SEC.
Assessment of the impact of the TRX delisting
A look at TRX’s price action over the past 24 hours revealed that the delisting had a clear impact. For example, TRX fell as much as 8% from its 7-day high of $0.0679 to $0.0621, its lowest price in the last 24 hours at the time of going to press. A drastic departure from the previously bullish performance seen over the past 2 weeks.
Source: TradingView
TRX’s money flow indicator showed a sudden shift in the past 2 days, highlighting the sudden outflow of liquidity. Also, the price dip pushed the RSI below the mid-level of the RSI, benefiting the bears. But will the bears continue to push further down?
Sun stated that the US delisting is not expected to have a major impact on Tron and TRX. The crash was likely mitigated by the fact that the delisting will only affect US customers, leaving international customers with access to TRX.
Binance’s delisting had a significant impact on demand for TRX in the derivatives market. This was evidenced by the major dip in the Binance funding rate. The market cap fell by about $400 million in the last 2 days.
Source: Sentiment
Despite the dip, the market cap indicated some recovery, confirming significant buying pressure. This suggested that the market had already absorbed the impact. The latest readings of the weighted sentiment numbers indicated that there was still some optimistic confidence in the market.
Source: Sentiment
How much are 1,10,100 TRXs worth today
In addition to prevailing investor confidence, Tron also maintained healthy development activity. This can further contribute to the confidence boost. However, there is still some risk of more downside if current Tron concerns spread beyond the US and into the global arena.
This post TRX is suffering after Binance announced its delisting amid Sun’s legal troubles
was published first on https://ambcrypto.com/trx-suffers-after-binance-announced-delisting-amid-suns-legal-troubles/
