• Binance coin (BNB/USD) has been bearish since the FTX collapse, trading on an upside at $255 and facing resistance at $266.
• This was largely due to the collapse of FTX as investors shifted to decentralised exchanges, and the concerns raised by Binance’s proof of reserves.
• Recent recoveries have been promising, but BNB is yet to break above the crucial $266 resistance level.
Binance coin (BNB/USD) has been a relatively stable cryptocurrency since the start of the year, but its performance has been far from bullish. The native token of the world’s largest centralised crypto exchange suffered a major blow when the collapse of FTX ignited fears that no exchange was too big to fail. This sent BNB tumbling to $220 by mid-Dec.
The outflow from centralised peers towards decentralised exchanges was a major factor in this, as investors looked for more secure options. The fears were further heightened when Binance’s proof of reserves raised questions of whether the exchange was sufficiently collateralised. This sent BNB into a bearish spiral, with the latest recoveries only seeing it reach an upside at $255.
Despite the bullish momentum, BNB is yet to break the crucial resistance level of $266. This is a major resistance level on the daily chart and must be broken for BNB to make more significant gains. A bullish MACD crossover has been initiated, but the MACD indicator is still bearish. As such, BNB may still be some way off from a full recovery.
That said, the recent recoveries have been promising and investors remain hopeful that BNB will continue to make gains. But until it breaks the $266 resistance level, it is unlikely that BNB will make a full recovery. As such, the cryptocurrency will remain bearish in the short-term and investors should be wary of an eventual pullback.