Yesterday, the largest exchange by trading volume, Binance, announced that it would be delisting four coins. All four coins dumped on the news and depreciated in the range of around 10% to approximately 37%. Bytecoin was one of the coins being delisted and made the move from an opening of $0.0022 to an intraday low of approximately $0.00165, around a 25% decrease.
The drop was on significant volume, and after an attempt at retracing back up, we are seeing a follow-up decrease today. After the dump, the price made an attempt to rise back up but failed to rise to the $0.002 mark and is now trading back around $0.0017. Both yesterday’s and today’s drops are significantly above the 20-period average daily volume.
The hourly chart provides a closer look at the drop upon the announcement of the delisting. Bytecoin typically trades with less liquidity than larger cap cryptocurrencies such as those in the top ten. This can make price blip back and forth around a tight range for a prolonged period of time which was happening prior to the delisting being announced.
Upon the announcement, significant volume entered the market as traders rushed to sell their holdings. Volume has begun to drop off since the announcement but is not close to the low levels that were being seen prior to the announcement which indicates we might see a further drop. The brief retracement met resistance at the 50 EMA and has dropped since.
For holders of BCN, it is a tough decision whether to hold or sell. A key source of capital has been cut from the project and other exchanges are more likely to delist after the market leader Binance doing so. However, with the fundamentals of the project staying largely the same, traders who sell now may be selling near a bottom.
- Bytecoin dumped 25% on the announcement of being delisted from Binance.
- Price attempted to retrace but met resistance at the hourly 50 EMA around the $0.002.
- Other exchanges more likely to now delist the project, but the fundamentals of the project largely remain the same.
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