Binance recently announced a list of altcoins under consideration for delisting. This list is updated regularly, and coins on it often face significant selling pressure due to their potential removal from the exchange. However, surprising price increases can occur, as demonstrated today by VOXEL Coin.
Why is VOXEL Rising?
VOXEL Coin, which was placed on the delisting watchlist, experienced a rapid price increase over the weekend after a steady decline that lasted for 15 days. This prolonged selling activity highlighted the potential for the altcoin to be removed from the exchange, but now it has skyrocketed by seven times from its recent lows.
After climbing to $0.178, VOXEL Coin continues to find buyers around the $0.12 mark. Just hours earlier, the altcoin was hovering at $0.03, making this turnaround responsible for the liquidation of many short positions.
Since May 2022, the coin has struggled to exceed $0.52, despite reaching an astonishing valuation of $7 during the 2021 bull market. The Federal Reserve’s aggressive interest rate hikes caused it to lose the crucial $1 psychological support, with its price plummeting below $0.1 over the years.
Lessons from VOXEL Coin
This situation reminds long-term altcoin investors that the expectation of reaching all-time highs may not materialize as more altcoins enter the market. Though many investors have been waiting for a favorable entry point at $1, they have mostly seen further declines instead.
With prices decreasing by 99%, new lows were consistently established, and it seems unlikely that we will see the price return to the $6-$7 range. Altcoins on Binance’s delisting watchlist often face neglect, failure to meet promises, and stagnation in development, leading to their designation on this list. The troubling reality is that issues with the project and its team likely prompted Binance to add VOXEL to this watchlist.
But what caused the 700% increase today? Investors typically sell at a loss for coins on the delisting list, as other exchanges are expected to follow Binance’s lead. In VOXEL’s case, this scenario saw market makers or a few whales engage in speculative actions, liquidating short positions while attempting to profit. Given the high prices, investors might find it much riskier to buy on these speculative moves, where the likelihood of making profits appears low.
