• Binance (BNB/USD) was relatively stable in 2020 and neared the $400 price level before the collapse of FTX.
• BNB has since remained bearish, suffering from outflows from centralised exchanges and an audit report raising questions about Binance’s proof of reserves.
• BNB is currently facing resistance at $266 after recent recoveries, with a bullish MACD crossover providing a sign of improved momentum.
The past year was largely bearish for almost every cryptocurrency, but Binance (BNB/USD) was relatively stable. At one time before the collapse of FTX, BNB had neared the $400 price level. However, since then, the native token has remained bearish. The collapse of FTX caused investors to shift to decentralised exchanges, leading to outflows from centralised peers and detrimentally affecting BNB. To make matters worse, an audit report raised questions about Binance’s proof of reserves, further exacerbating the situation.
BNB has been suffering in the aftermath, although the latest recoveries are providing some hope. On the daily chart, BNB is currently mildly bullish and a bullish MACD crossover has been initiated, suggesting an improved momentum for the cryptocurrency. Unfortunately, the MACD indicator is still bearish, meaning that the bulls have yet to gain a significant foothold. If they do, then BNB could potentially break through the crucial resistance level of $266.
It’s important to remember that BNB is still in a bearish position, and it could easily slip back down if there are any negative developments. However, the current bullish momentum is encouraging and could potentially lead to a longer-term bullish trend if the bulls can break through the $266 resistance level. Therefore, investors should keep a close eye on BNB’s price movements and be prepared to act quickly if any significant developments arise.
