Ronin (RON) saw its value drop 26% immediately after listing on the Binance exchange, wiping out a 15% gain and marking a drop of almost 30% in the past 24 hours.
After a short-lived recovery that pushed Ronin above the $3 mark for the first time since February 2022, the digital asset encountered strong resistance and fell below a critical support level.
Despite reaching a two-year high of $3,538 due to growing investor interest and increased activity on the Ronin network, the asset has now retreated to $2.62, wiping out all its recent gains.
The sharp decline has also impacted Ronin’s market position, with its market capitalization falling below the $1 billion mark and currently sitting at $746.26 million. However, Ronin is still trading at a 23-month high, with the $2.5 support level preventing further losses.
Santiment data showed an increase in social volume and negative sentiment around Ronin, indicating a strong change in investor sentiment.
Over the past 24 hours, social volume has increased by 254% and negative sentiment has increased from 0.87 to 5.58, indicating a dramatic change in investors’ outlook. This negative sentiment has led to a surge in selling pressure, with trading volume rising 275% to $203 million as investors rushed to sell their holdings.
The drastic price drop positions Ronin as the top loser among the top 100 cryptocurrencies by market capitalization over the past day, a stark contrast to its status as the biggest gainer a day earlier.
The initial price increase was driven by increased investor interest and a spike in network activity, with trading volume reaching $80 million and the number of daily active addresses increasing fivefold from December to this month. However, the price started falling just five hours after Binance started trading RON.
The price volatility led to speculation and accusations of market manipulation against Binance. In response, Yi He, the exchange’s co-founder, announced a $5 million bounty for information that could identify all Binance employees involved, demonstrating his commitment to maintaining market fairness and investor confidence.