Updated on January 23, 2023 07:10 AM
The BNB coin has dropped to almost 12% this week, continuing the blood-shed for almost 11 days.
Following the recent FTX crash, Binance has been bombarded with rumours, conjectures, and FUD (fear, uncertainty, and doubt) as BNB fell almost 12%. Across social media, there has been speculation about Binance's proof-of-reserves (POR) initiatives, as well as criticism of the company's POR efforts.
Changpeng Zhao, often known as CZ, addressed the FUD on Twitter on December 13.
CZ claimed that Binance had been continuously attacked with FUD since day one, some of which were funded by a big exchange.
CZ's comments follow the Reuters article published on Dec. 12, which suggests the U.S. Department of Justice (DOJ) has been examining Binance. According to Reuters, four individuals familiar with the subject stated on Monday that DOJ prosecutors disagree over the claimed inquiry.
Meanwhile, Binance's BNB exchange token has taken a significant fall as a result of the speculation and fear surrounding the world's largest crypto exchange. During the previous two weeks, the crypto exchange token BNB lost 8.5% of its value.
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BNB is now trading at USD 249.26 with a 24-hour trading volume of USD 906,919,136. In the previous 24 hours, BNB has dropped 5.63%. BNB is currently ranked #5 on CoinMarketCap, having a market cap of USD 39,872,961,375. It has a maximum quantity of 200,000,000 BNB coins and a circulating circulation of 159,967,418 BNB coins.
ALSO READ: A Brief History of Binance Coin (BNB)
BNB has lost more than 8% against the greenback in the last seven days, but since the most recent US inflation data was released on Tuesday, BNB has only lost 6.9% versus the US dollar. The tendency is the inverse of what popular cryptocurrencies such as BTC and ETH have done, with both coins increasing in value by 5-7% on Tuesday morning.
Ethereum (ETH) is down 72% from its all-time high last year, whereas Binance's BNB was only down 60.8% from the crypto asset's all-time high of $686 per unit on May 10, 2021.
Despite this week's substantial losses, BNB has outperformed crypto assets such as BTC and ETH in terms of losses from all-time highs reached last year. The price has respected the declined support many times and retreated from the support line without breaking it.
On a 4-hr chart, the BNB price action is making a downfalling trend line. This means that the decline is assured before the price breaks the trend line to go upwards. However, the horizontal supports have been broken several times which indicates a further price decline.
The 14-day RSI has downturned to 26, meaning that the token is oversold. This RSI value indicates that investors may enter the BNB market to make the price jump from here to gain a good amount of profit.
Also, the MACD indicator shows the 9 EMA line has crossed the 26 EMA line which means that a further decrement in price could be seen before an uptrend.
Despite the ongoing decline of Binance Token (BNB) in recent days, the native exchange coin may not have reached its local bottom yet. On the daily chart, the price has broken through the $255.6 support level. If purchasers are unable to retain the initiative until the conclusion of the day, the price may fall to the $230-$240 range.
BNB Coin, like the rest of the market, fell below its long-term support level of $260, losing 13.3% in the last seven days. This bearish price movement may also be explained by the increased demand on the exchange, which resulted in over $8 billion in daily withdrawals that were processed correctly.
With this recent collapse, BNB is clearly in a downtrend, and the price has found some reprieve at the $245 support level. Despite this, sellers continue to dominate, and the MACD histogram suggests a growing negative momentum.
If buyers do not return to BNB, the price might fall below $200, a critical support level where buyers have previously been able to reverse the slump.
The daily active network address has been declining since June 2022. The decline shows that investors are losing their interest in the token. The daily active user count has been shredded from 8366 to 3771.
Also, the development activity has shown a bare minimum movement to the asset’s development space. A low development activity ratio shows that the protocol is less into any new projects and developers are not doing much to make the network more optimised.
Q1) What are BNB for?
Ans: BNB Coin is a cryptocurrency that is primarily used on the Binance exchange to pay transaction and trading fees.
Q2) What is BNB's all-time high?
Ans: The all-time high for BNB is $296.90. The circulating supply of BNB is 159.97 million BNB, with a maximum supply of 200 million BNB.
Q3) How old is the BNB coin?
Ans: Binance Coin debuted in July 2017 on the Ethereum blockchain as the token ERC-20 before becoming the native currency of Binance's blockchain, the Binance Chain.
Q4) Is BNB a coin or token?
Ans: The BNB Chain ecosystem is powered by the cryptocurrency token BNB. As one of the world's most popular utility tokens, BNB can not only be traded like any other cryptocurrency but it can also be used in a variety of applications and use cases.
Q5) Does BNB run on Ethereum?
Ans: BNB was an ERC-20 token produced on the Ethereum network during its ICO and early days. Binance launched its crypto trading platform just days after its mid-2017 ICO concluded.
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