TRON Loses Steam As Binance Announces TRX Delisting After Justin Sun Controversy

Binance has announced the delisting of TRON, in a move that was carried out after the US Securities and Exchange Commission’s recent action against the crypto mogul.

According to the SEC’s press release, the regulatory body charged Justin Sun and his three wholly-owned companies – namely Tron Foundation Limited, BitTorrent Foundation Ltd, and Rainberry Inc – of fraud for the unregistered sale of alleged securities to investors.

The regulatory body accuses Sun of “extensive wash trading which involves the simultaneous or near-simultaneous purchase and sale of a security to make it appear actively traded without an actual change in beneficial ownership, and for orchestrating a scheme to pay celebrities to tout TRX and BTT without disclosing their compensation.”

The SEC also charged several celebrities for not disclosing their compensation for touting TRX and BTT illegally. Big names like Jake Paul, Ne-yo, and Lindsay Lohan make up the list. 

After the delisting announcement, TRX went down 5% in the past 24 hours. Fear, uncertainty, and doubt then filled the minds of investors. 

Image: CoinCu News

TRON: Rumors And FUD – Perfect Storm Brewing

Just as the announcement went live, rumors spread on Twitter that Justin was arrested when he landed in Hong Kong to attend a cryptocurrency event. Despite the rumors, he was seen freely at the event, even Tweeting that he met with his mentor which is Alibaba’s former CSO. 

BREAKING:

Rumors of Justin Sun being arrested.
Justin sun tweets “4”

— whalechart (@WhaleChart) April 11, 2023

Although these recent tweets should’ve stemmed the FUD around his situation, it has not stopped the bears from taking hold of the market quickly. Coinglass data reveals that sentiment surrounding the token has not waivered from bearish, with more short positions betting against TRX. 

Long holders were also blown out of the water. As of writing, TRX experienced a half-million liquidation spree, with the majority of these liquidations coming from long positions.

At $0.063897, Can Tron Recover From The FUD? 

Although the general market sentiment right now is bearish, Sun’s recent charges exaggerated the effects on Tron. Bears are currently testing the $0.06209 support. However, this may fail in the short term as the latter support is reliable. 

TRX total market cap now at $5.8 billion on the daily chart at TradingView.com

TRX bulls should then defend the current support as this will provide investors a launch pad to follow a possible sentiment flip in the market. Monitoring the situation as it unfolds will also clear the FUD, giving investors and traders an edge in decision-making.

For the long term, targeting $0.06544 will be beneficial. Flipping this resistance to support would strengthen the position of long-holders. 

-Featured image from WhiteBIT Blog