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BNB feels the sting as investors continue cutting their losses

2min Read

BNB stands in a tough spot as this dormant whale cut off losses by selling the BNB holdings. Additionally, BNB exchanged hands 22% lower in the last seven days, which wasn’t a good sign for the exchange and its coin.

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  • A whale that has been dormant for 2 years sold 10,000 $BNB ($2.3M) at $230 as of 12 June. 
  • BNB’s price plunged below $250 at the time of writing and its RSI stood in the oversold region. 

A BNB whale cashed out part of its holdings after two years of dormancy amid an ongoing crypto regulatory crackdown. The whale sold off 10,000 BNB coins at $230 and pocketed a total of $2.3 million. This was revealed by the on-chain analyst account, Lookonchain. The wallet still had 15,000 BNB coins which roughly translated to $3.5 million.


Realistic or not, here’s BNB’s market cap in BTC terms


The whale accumulated BNB coins two years ago. Furthermore, the whale had made 110,000 BNB ($47.5 million) at that time with only 10 BNB on a SafeMoon trade. The whale transferred 10 BNB to SafeMoon and received 100 trillion SafeMoon tokens.

Most of which, the whale dumped for 110,000 BNB. Furthermore, the whale then transferred some and held 25,000 until the time of this writing.

Downfall after downfall…

The sale of the BNB tokens could be a result of the U.S. Securities and Exchange Commission labeling the token as a security. Furthermore, it could also be the outcome of the regulator suing Binance, Binance.US, and their owner, Changpeng ‘CZ’ Zhao for allegedly breaking securities laws.

According to CoinMarketCap, the price of BNB, the fourth-largest cryptocurrency by market capitalization, had fallen by over 22% in the last seven days and down 1.18% in the last 24 hours. At the time of this writing, BNB was trading at around $229.9.

Source: TradingView

The Relative Strength Index (RSI) dipped to 16.39 which was operating in the oversold region below the 30-mark. This highlighted the severely undervalued position of the BNB coin.

Furthermore, the Moving Average Convergence Divergence (MACD) indicator demonstrated that the MACD line (blue) was in a freefall with the signal line (red) moving above the MACD line. This was a strong bearish crossover and reflected the prevailing negative sentiment.


Realistic or not, here’s BNB’s market cap in BTC terms


Can BNB weather the storm?

In addition to the above-mentioned data, the SEC’s lawsuits against Binance and rival Coinbase resulted in outflows and declining crypto prices. Binance.US also experienced a 78% decline in market depth.

The primary reason behind the plummeting market depth could be attributed to the swift departure of market makers from the Binance.US platform in the wake of the lawsuit. 

The aforementioned trends sparked concerns about liquidity and raised questions about the future of the exchange. The significant decline in market depth raised concerns for traders who rely on robust liquidity to execute trades.

With the reduced availability of buy and sell orders, traders may face increased slippage and potential difficulties in obtaining desired trade execution prices. The lack of liquidity may also undermine the overall efficiency and attractiveness of the exchange. This could further damage the exchange’s reputation and ability to attract users.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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