How will the rising Binance outflows affect BNB price?
Binance is in trouble as crypto investors flee. The company has seen its assets drop from over $70 billion in November to about $55 billion. In the same period, Binance Coin price has plunged from an all-time high of $708 to $250.
Binance outflows continue
Binance is the biggest player in the cryptocurrency industry. At its peak, the company had more than 100 million customers from around the world. It provides numerous services, including a platform to buy and sell cryptocurrencies and one to do margin trading. The firm also has an investment platform where people can buy crypto and earn returns.
Binance has come into the spotlight in the past few weeks following the collapse of FTX and Voyager Digital. Their collapse have had a wake-up call in the crypto industry as regulators work to prevent another meltdown in the sector.
Crypto investors are also afraid about the health of their investments. As a result, many crypto holders have decided to withdraw their digital currencies. Data compiled by DeFi Llama shows that outflows in the crypto industry have been growing.
Investors pulled $116 million from the exchange in the past 24 hours and $957 million in the past 7 days. The exchange have lost over $9.5 billion in the past 30 days. This is a sign that investors are losing confidence in the industry, as I wrote here.
The impact of rising outflows is dire for Binance Coin price. BNB has crashed by more than 65% from its highest level this year and is now hovering near its lowest level since June.
The coin has also imploded because of the falling activity in Binance platforms like decentralized finance (DeFi), metaverse, and non-fungible tokens (NFT). The total value locked in Binance’s DeFi ecosystem has dropped to about $5.8 billion.
BNB price prediction
BNB/USD chart by TradingView
The daily chart shows that Binance Coin’s price has been in a consolidation phase in the past few days. It has managed to move below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the oversold level.
Binance Coin has also moved below the important support level at $254.9, which was the lowest level on November 22. Therefore, there is a likelihood that the coin will have a bearish breakout in the coming days. If this happens, the next key level to watch will be at $200.
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Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
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