Binance has announced the delisting of three altcoins: Kadena (KDA), Perpetual Protocol (PERP) and Flamingo (FLM), triggering immediate volatility across the crypto market. While KDA and PERP suffered steep losses, FLM’s surprising upward swing caught traders off guard.
The exchange stated that the decision follows its standard procedure of removing assets that fail to meet listing criteria such as liquidity, trading volume, project progress and regulatory compliance. The delistings will take effect on 12 November, after which trading pairs for these tokens will be suspended.
The market’s reaction was swift and polarised, with KDA and PERP tumbling amid panic selling, while FLM staged an unlikely rebound.
Kadena (KDA): Continued Decline After Team Exit
Kadena has been on a downward spiral since last week, when its core team reportedly announced their withdrawal from the project, sparking uncertainty among investors. The announcement sent shockwaves through the community and Binance’s delisting notice only intensified the sell-off.
Within hours, KDA’s price plunged by 25%, pushing it closer to its all-time low of $0.045. Analysts note that the Moving Average Convergence Divergence (MACD) indicator on the daily chart has shown a bearish crossover, signalling continued downward momentum.
However, not all exchanges are abandoning the token. Rival exchange Gate.io confirmed it will continue supporting Kadena, offering a glimmer of hope to the community.
If support consolidates from secondary markets, KDA could attempt a recovery towards $0.20. But with dwindling demand and weak fundamentals, the more probable outcome is further downside before any long-term stabilisation.
Perpetual Protocol (PERP): Bearish Momentum Intensifies
The Perpetual Protocol (PERP) token also found itself on Binance’s delisting list, further straining its already fragile market position. The token, native to the decentralised perpetual futures platform, saw a 14% price drop shortly after the announcement.
PERP has struggled to recover from its recent low and remains over 76% below its peak from just 19 days ago. Technical indicators suggest continued weakness, the token remains trapped within a descending price channel, while the Awesome Oscillator (AO) has entered negative territory, signalling accelerating bearish pressure.
If sellers maintain control, PERP could slip below the channel’s lower boundary, potentially falling to $0.12.
However, analysts point to a possible counter-scenario. A strong buying resurgence and breakout above immediate resistance could trigger a short-term recovery toward $0.28, although this outcome appears increasingly unlikely without renewed market confidence.
Flamingo (FLM): A Surprising Rally Amid Delisting News
In contrast to its peers, Flamingo (FLM) defied expectations by rising 13.6% following Binance’s delisting announcement, reaching $0.023. The move surprised traders, as assets facing delisting typically experience steep sell-offs.
Analysts suggest that the price surge could be driven by short-term speculation rather than genuine buying conviction. However, warning signs are already emerging. The Chaikin Money Flow (CMF) indicator has turned negative even as prices rose, a classic case of bearish divergence, implying that the rebound may lack real momentum.
Similarly, the Supertrend indicator still positions FLM below its red resistance line, indicating that the overall market bias remains bearish. Should the rally lose steam, FLM could slide to $0.013.
Nonetheless, if demand unexpectedly increases, FLM might challenge resistance levels near $0.027, validating the resilience seen after the announcement.
Binance’s Quality Control and Market Implications
Binance periodically conducts quality reviews of all listed digital assets to ensure user protection and compliance with evolving regulatory standards. Projects that fail to meet these standards face removal, a move the exchange argues is necessary to maintain market integrity and investor trust.
The delisting of KDA, PERP and FLM underscores the volatile nature of altcoin investing, especially for projects struggling to maintain momentum or adapt to shifting regulatory demands. While Flamingo’s short-lived surge demonstrates that investor sentiment can still surprise, the broader market reaction highlights growing caution toward underperforming assets.
For now, Binance’s decision serves as a reminder that the crypto ecosystem is evolving and only projects with strong fundamentals, transparency and sustained development will thrive in the long term.
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