After Binance Listing, RESOLV (RESOLV) Token Plunges Over 20% as Profit-taking Emerges

RESOLV (RESOLV) dropped sharply on Thursday, falling from a daily high of $0.4088 to $0.29 at the time of writing.

After notching double-digit gains following a Binance listing, massive airdrop, and multi-exchange debut, RESOLV, the governance and rewards token of the Resolv stablecoin protocol, has plunged over 20%.

As of Thursday morning, RESOLV (RESOLV) dropped sharply, falling from a daily high of $0.4108 to $0.29 at the time of writing.

The token dropped as low as $0.25 earlier in the session, marking a steep correction for the token, which had surged to highs of $0.45 on Wednesday. The decline brings the token’s weekly gains to about 12%, though it is still trading well above its IOU prices, which were seen in the $0.09 range.

The pullback in RESOLV comes just two days after its listing on Binance, KuCoin, and Bitget. The token is a high-profile test case for how aggressive incentive models and multi-platform debuts perform.

The introduction of RESOLV on Binance drew significant attention, especially as the exchange typically favors tokens with a pre-existing user base and community. This listing also marks a key moment for the exchange as it navigates the integration of new tokens and the handling of airdropped assets.

RISOLV's price drop may also be attributed to profit-taking activity, given the massive rally that saw the token surge from $0.091 to $0.41. Early buyers, especially airdrop recipients, are likely to take some profits if the token drops below key support levels.

This pattern of IOU prices and airdrops is familiar in the crypto sphere, with tokens like Arbitrum (ARB) and Starknet (STRK) experiencing similar market dynamics earlier this year.

For instance, ARB fell nearly 90% from its IOU highs as smart money wallets dumped large amounts of the token shortly after its launch on Coinbase. Similarly, STRK plummeged over 50% within its first 24 hours as whales and airdrop farmers sold their holdings.

In addition to the profit-taking, the RESOLV team is facing allegations of unfair airdrop allocation. A critic on X accused the project of distributing 11.7% of RESOLV’s supply, which is said to be used for ecosystem development and community airdrops, to be distributed. However, only 10% of the token’s supply was supposed to be allocated for airdrops.

Of the 11.7%, 6.4% of the token’s total supply was distributed to just 230 addresses, including at least one wallet that did not appear in the original airdrop contract. This controversy has likely damaged community trust and may have accelerated panic selling.

From a technical perspective, the Relative Strength Index for RESOLV is now falling back after reaching near-overbought territory of 65-70. This suggests a loss of bullish momentum as short-term traders appear to be exiting their positions with volume also shrinking.

If the price can hold above $0.35 and the rally resumes, the next upside targets are $0.40, then possibly $0.45. But if it drops below $0.30, we can expect further correction toward $0.25 or even retests of $0.19.