Binance sees no major withdrawals, but BNB could be in a frenzy…
The SEC filed a lawsuit against crypto exchange Binance. While this didn't impact withdrawals on the exchange, BNB's press time state was in dire need of investor confidence.
- SEC sues Binance, but the exchange sees no major ETH and BTC withdrawals.
- However, BNB witnessed a significant drop and was controlled by the bears at the time of writing.
The US Securities and Exchange Commission (SEC) started a new week with a bang as it filed another lawsuit. This time the regulatory body decided to target the world’s largest exchange Binance.
The lawsuit that extended to the Binance [BNB] CEO CZ claimed that Binance unlawfully solicited investors to buy, sell, and trade crypto asset securities. And this was done through unregistered trading platforms.
In light of these events, Binance didn’t stand back. As of 5 June, Binance responded to the lawsuit. The exchange claimed that the SEC was trying to unilaterally define the crypto market structure. Furthermore, the exchange also stated its disappointment toward the U.S. regulatory authority.
Our response to the SEC's complaint.https://t.co/mgXxGTKr67
— Binance (@binance) June 5, 2023
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The aftermath of it all
Despite all that went down, Binance received support from several notable personalities in the crypto world. Additionally, Binance supporters could also breathe a sigh of relief as the CryptoQuant CEO Ki Young Ju posted this update about the exchange.
SEC sues @Binance, but no major withdrawals from Binance. User balances are increasing actually.https://t.co/ZDMOi2Zewp pic.twitter.com/uGPbLCMiwA
— Ki Young Ju (@ki_young_ju) June 5, 2023
The CryptoQuant co-founder stated that no major BTC and ETH withdrawals were seen on Binance. Contrary to the expectations of many, user balances witnessed a rise.
Additionally, the CryptoQuant exec also pointed out that BSC had taken off 10% of its reserves which was concerning. However, a look at the Binance BTC reserve hourly chart pointed out an outflow of 4k BTC, which was an everyday affair as per Ki Young Ju.
Hourly Binance $BTC Reserve. 4k BTC flowed out so far but that's normal. pic.twitter.com/sTovGXY6uc
— Ki Young Ju (@ki_young_ju) June 5, 2023
A helping hand would be great…
With all the events that transpired, BNB did seem in a position where it could use a helping hand. At the time of writing, BNB seemed in a distraught state as it exchanged hands at $276. Additionally, a look at the four-hour chart also depicted some miserably positioned indicators.
The Relative Strength Index (RSI) that hovered around the neutral zone in the early hours of 5 June dropped to 10.48 at the time of writing. This indicated the presence of significant selling pressure in the market. Furthermore, BNB’s Moving Average Convergence Divergence (MACD) also painted a grim scenario.
The MACD line (blue) witnessed a freefall and moved significantly lower than the signal line (red) below the zero line. This was a clear indication that the bears had gained control of the market in light of the events that transpired.
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Additionally, the Money Flow Index (MFI) too painted a bearish picture as it stood at 8.53 at the time of writing.
In addition to the aforementioned information, BNB’s market depth dropped by more than half since the news of the lawsuit broke. This indicated that investors in the market weren’t as interested in the exchange’s token.
$BNB market depth on Binance has more than halved since news of the SEC lawsuit.
Interestingly, depth started to drop a few hours before the official announcement 👀 pic.twitter.com/ZJ6Spxb6Iu
— Kaiko (@KaikoData) June 5, 2023
