2023-9-9 16:00 |
Binance Coin price has been in a strong bearish trend in the past few months amid rising concerns about Binance. The BNB coin was trading at $214 on Friday, ~40% below the highest level this year.
Concerns about Binance remainsBinance, the biggest crypto exchange in the world, has been under intense pressure in the past few months. The biggest challenge was a major lawsuit by the Securities and Exchange Commission (SEC).
The suit made several allegations, including that Binance comingled funds, used a Swiss fund to manipulate prices, offered services to US customers, and offered securities without following the law. Binance has rejected these claims.
Further, Binance has seen some of its high-ranking executives leaving the exchange. For example, Gleb Kostarev and Vladimir Smerkis, senior officials overseeing Russia have departed. Tens of other executives have left the company as well.
At the same time, Binance has seen volume of assets traded in exchange continue falling as the crypto winter continues. Data shows that Binance has over $57 billion in total assets of which $50 billion are clean ones.
And most importantly, the total assets locked in the Binance Chain have been falling. BNB Chain now has $4.48 billion in total value locked (TVL), making it the third-biggest player in the industry after Ethereum and Tron. In BNB terms, the chain has over 21 million tokens, the lowest level since April 2021. At its peak, the coin had over 66 million tokens in its ecosystem.
The biggest DeFi networks in BNB Chain are PancakeSwap, Venus Finance, Radiant, and Coinwind. PancakeSwap, a leading decentralized exchange has been overtaken by large exchanges like dYdX and Uniswap.
The BNB price is also struggling because of the broader issues in the market. For example, the crypto fear and greed index has retreated while the US dollar index (DXY) has soared to a five-month high.
BNB price forecastThe daily chart shows that the BNB coin price formed a triple-top pattern at $340 earlier this year. This pattern is one of the most bearish ones in technical analysis. It then made a bearish breakout below its neckline at $264.
The BNB coin price has now moved to the key support at $220, the lowest level on December 22nd. It has also formed a bearish flag pattern. Therefore, I suspect that the coin will have a bearish breakout as sellers target the next psychological level at $200. The stop-loss of this trade will be at $230.
The post BNB price is at risk as Binance Chain DeFi TVL hits 2021 lows appeared first on Invezz.
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