Binance’s coin, BNB, is holding steady at the time of this writing, but is down 30% from November’s highs. However, the curious thing about BNB’s performance, despite the current chaos in the crypto market, is that the coin is holding steady above $250.
The contraction early last week forced most assets to give way in price, and BNB was no exception. However, instead of a follow-through, BNB found support at $250, bouncing back to higher numbers.
Even so, as long as the coin is trending above Q3 2022 lows, there could be more upsides in the short to medium term.
Binance, the Instigator of FTX’s Demise
Amid the liquidity crisis, BNB remains solid, and Changpeng Zhao, CZ, is confident of what lies ahead. CZ has been especially vocal about the recent turn of events.
His tweet that Binance, one of the initial investors of FTX and whale holders of FTT, was willing to dump their FTT holding caused panic in the market.
The fall of FTT pushed FTX and Alameda Research out into the world, leading to their bankruptcy. Although CZ has revealed that Binance has not yet dumped its FTT holdings, the coin has dropped in price, in turn taking the entire market down with it.
Even so, Binance and CZ are confident and are willing to fill in the shoes left by Sam Bankman-Fried. Earlier today, he said:
“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund to help projects which are otherwise strong, but in a liquidity crisis. More details to come soon.”
BNB Price Analysis
BNB is stable on the last trading day and down 15 percent week-to-date.
From the daily chart, BNB remains bearish. Nonetheless, prices are trending above Q3 2022 lows at $250. Technically, sellers remain in charge, but buyers have a chance.
Since prices are within the November 9 bearish engulfing bear candlestick, every high below $335 is a liquidation opportunity for sellers targeting $250.
It is because the November 8 and 9 bars are wide-ranging and have high trading volumes, favoring sellers from an effort versus results perspective.
Losses below $250 may see BNB plunge to $220—or lower, in correction from August highs. Conversely, gains above $335 may offer relief, lifting the coin back to $360—or higher.
Technical charts courtesy of Trading View.
Disclaimer: Opinions expressed are not investment advice. Do your research.
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