Ronin (RON), the token powering the Ronin Network, experienced a rollercoaster ride in the past 24 hours, rallying to a two-year high before crashing nearly 30% after its listing on Binance. This dramatic price swing has raised questions about potential market manipulation and the long-term viability of the project.
From Hero To Zero: A Short-Lived Rally
On February 5th, RON enjoyed a meteoric rise, surging 15% to reach a peak of $3.54. This rally was fueled by investor optimism surrounding the network’s growing user base and address activity. Trading volume spiked to $80 million, signifying increased market participation.
However, the euphoria was short-lived. Coinciding with the Binance listing announcement, the price began a precipitous decline five hours after trading commenced on the exchange. By today, RON has shed nearly 30% of its value, currently trading at $2.54. This drop marks a breach of the crucial $3 support level, which the token had recently reclaimed after 14 months.
Ronin currently trading at $2.7899 on the daily chart: TradingView.com
Negative Sentiment And Selling Pressure Mount
Social media sentiment surrounding RON mirrored the price action. Santiment data (chart below) reveals a 250% increase in social volume within 24 hours, but with a concerning shift towards bearishness. Negative sentiment spiked from 0.87 to 5.58, reflecting growing investor concerns.
This negativity translated into significant selling pressure, with 24-hour trading volume soaring 275% to $203 million. Market participants, eager to offload their holdings, contributed to the downward spiral.
Source: Santiment
Binance Under Scrutiny: Pump And Dump Allegations
The timing of the price surge and subsequent crash has fueled speculation of a “pump and dump” scheme, with some accusing Binance of complicity. While no concrete evidence has surfaced, Yi He, Binance’s co-founder, acknowledged the concerns and announced a $5 million bounty program to expose any corrupt employees involved in such activities.
Future Uncertain: A Cautious Outlook
Despite the recent setback, RON still stands at a 23-month high compared to February 2022. However, the future remains uncertain. The sharp drop, shifting sentiment, and potential manipulation allegations have cast a shadow over the project’s prospects.
Featured image from Adobe Stock, chart from TradingView