©Reuters
Investing.com – After the scary news of the crisis in the world’s largest cryptocurrency market, Binance, it seems that the jitters are about to dissipate.
The Binance Coin symbol managed to stop a violent streak of losses, during which it lost almost a quarter of its value, following the news of the impending default that hit the currency market.
This comes after the recent drop in the price of the coin, as there is a growing sense of shorting the large token.
The recent news that accounting firm Mazars is severing ties with an exchange appears to be having a lingering effect on the price of BNB.
Meanwhile, overall sentiment in the cryptocurrency market remains bearish after the Federal Reserve indicated it would continue to raise interest rates in 2023.
Binance now
The Binance symbol has risen as of this writing, within the 5% range, to take second place after the gains of the famous memecoin symbol among the 100 largest digital currencies by market value.
Binance coin hovers near the important support levels at 250, however, the coin has lost over 15% in a week and is down 10% in a month while its market capitalization is $40 billion.
Binance Coin quickly fell from $295 levels to $220, with losses of around 25%, as news of the impending bankruptcy of the world’s largest platform spread.
Audit partner Mazars Group has reportedly suspended ties with Binance as the exchange faces pressure from the crypto community on asset transparency.
The trading community believes that Binance is not entirely transparent about how it holds and stores user assets, as this has led to a sharp drop in the price of BNB.
what happened?
Binance has faced a flood of negative news over the past few weeks, as negative news has hit the coin price following concerns over Binance’s Proof of Reserves and recent influx of withdrawals.
“We passed this extreme stress test because we operate a very simple business model: We hold assets in custody and generate revenue from transaction fees,” a Binance spokesperson said.
The world’s largest cryptocurrency exchange also faced questions this week over its ability to repay more than $2 billion linked to the FTX crash, sparking a new crisis further plaguing the cryptocurrency community.
Great pressure
As news of the default spread, BNB traders began opening huge short positions, and cryptocurrency expert Caesar said that $118 million worth of shorts had been opened on the BNB token.
The cryptocurrency expert added that traders are starting to increase sales of the Binance token, despite the steady decline in the token price in recent times.
Fusion Chaos
It comes amid the recent turmoil in the cryptocurrency market following the collapse of the FTX platform, as Binance released its Proof of Reserves report in collaboration with accounting firm Mazars Group.
However, during the Proof of Reserves review of Binance’s Bitcoin holdings, Mazars discovered that its Bitcoin reserves were secured in a single day in late November.
Furthermore, the report was later removed from Mazar’s official website, and they also temporarily suspended relations with several crypto companies, including Binance.
important signals
BNB price has given a decisive collapse from the multi-month support of $250-260, after losing this crucial support, the coin price is preparing to resume the prevailing downside according to market experts.
Breaking the $250 support fixes BNB price at 19% LOSS
The slope of the daily RSI has entered the oversold territory.
The daily trading volume in the BNB price is $1.39 billion, which indicates a gain of 32.4%.
Rest before the storm
Over the past 4 years, Binance’s coin price has had enough support from the $250-260 accumulation area that multiple reversals from this support indicated that the buyers were aggressively defending this level.
However, amid the recent decline in BNB price, sellers have delivered a massive drop from the $250 to $260 support. The drop should accelerate the underlying bearish momentum and set prices up for a deeper correction.
Observers believe that with the rise of the current symbol, this current jump in price may be a secondary stage of retesting, which must reconsider the breached resistance level.
If the altcoin shows sustainability below the $250 mark, a post-retest decline could send the price down 19% to reach the $190 level, conversely, the horizontal $215 level represents massive support in which buyers can take control of the trend.
technical indicator
RSI: This indicator reflects the strength of recent price action and is currently swinging in the oversold territory. A RSI of 28% reflects that traders have oversold activity, which increases the likelihood of a price rally to $ 250.
Exponential Moving Averages: Sideways EMAs (20, 50, 100 and 200) indicate that the sellers own the current price action.
Resistance levels: $250 and $300
Support levels: $215 and $190
