The cryptocurrency market witnessed a dramatic twist as Ronin (RON) plunged 26% in value soon after its listing on the leading exchange, Binance. This steep decrease annihilated the 15% gain Ronin had initially enjoyed, leading to a considerable 30% depreciation in its value within a single day. Despite rising above the $3 threshold and hitting a two-year high at $3.538, the digital asset met with substantial resistance and slumped below a significant support level, closing at $2.62.
The Fallout of Ronin’s Fall
As a consequence of the precipitous fall, Ronin’s market capitalization shrank to $746.26 million, missing the coveted $1 billion mark. Nevertheless, the cryptocurrency manages to stay at a 23-month high, courtesy of the $2.5 support level acting as a buffer against further declines.
A Surge in Social Volume and Negative Sentiment
The downturn in Ronin’s market performance coincided with a rise in social volume and negative sentiment, as per data from Santiment. Social volume registered a massive 254% increase within a day, and negative sentiment saw a considerable escalation, leading to increased selling pressure and a 275% hike in trading volume. This sudden price drop secured Ronin the unenviable title of the most significant loser among the top 100 cryptocurrencies by market cap.
Allegations of Market Manipulation
The initial price surge followed by the drastic crash raised eyebrows, with growing investor interest and a substantial upsurge in network activity being the attributed reasons. However, the volatility evoked suspicions of market manipulation. In response, Binance’s co-founder, Yi He, has stepped up to reassure the market by offering a $5 million bounty for information on any Binance staff potentially involved in unethical activities, in an effort to maintain market integrity and safeguard investor trust.