BNB, the native currency of the Binance ecosystem, is down 6% in the past 24 hours, trackers on March 28 show.
BNB Slips 6% As Sell Pressure Mounts
As the coin remains under pressure, it is underperforming the broader cryptocurrency market, trailing Bitcoin, Ethereum, and others within the same period.
As an illustration, Ripple (XRP) is up 24% in the last day, a performance divergent from the state of affairs in BNB, topping the top 50 in the last week of trading.
BNB is now trading at $309, down 6% in the past 24 hours. With increasing participation levels as trading volumes show, the coin has also broken below a critical support line as visible in the BNBUSDT daily chart. A notable observation is that the coin is edging lower, mirroring the bearish bar of March 22 when the United States Federal Reserve (Fed), raised interest rates as expected by economists, forcing crypto assets, including BNB, lower.
At the time of writing on March 28, BNB was relatively stable after yesterday’s drawdown. However, considering the bearish engulfing bar that drove prices below $320, and the failure of buyers to drive prices higher today, there are hints of weaknesses.
Based on the present candlestick formation, there are suggestions indicating that the coin could post more losses unless buyers step in in the sessions ahead. Presently, the level marking March 22 lows at $320 has turned to resistance and might be level chartists closely watch.
Specifically, technical indicators, especially moving averages are “bearish” within the last six to 24 hours, reflecting the dump of BNB prices during that time. Meanwhile, overbought and oversold indicators like the Bollinger Bands, Relative Strength Index, and Stochastic are mostly “neutral” in all time frames.
Binance Buys BNB, Sued By The CFTC
On March 13, the BNB coin was among the top-performing assets in crypto, together with Bitcoin. Then, the CEO of Binance, Changpeng Zhao said the exchange will be converting the $1 billion of the Industry Recovery Initiative Fund, to among other coins, BNB and Bitcoin.
Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency.
— CZ 🔶 Binance (@cz_binance) March 13, 2023
BNB’s price rose on this news and CEO Changpeng Zhao, while justifying this decision, cited regulatory changes, especially relating to stablecoins and the banking crisis, as the reasons behind the move. A few days earlier, the Silicon Valley Bank (SVB) had experienced a bank run, impacting USDC which briefly de-pegged.
Although BNB remains bullish for longer time frames, the cryptocurrency might be negatively impacted in the days ahead. The United States Commodity Futures Trading Commission (CFTC) is suing Changpeng Zhao and Binance for violating trading laws and giving access to citizens.
The lawsuit also states that Binance has been obfuscating the identity of its chief executives stating the exchange’s “reliance on a maze of corporate entities to operate the platform is deliberate; it is designed to obscure the ownership, control, and location of the Binance platform.”
Featured image from Canva, chart from TradingView.com