Binance is the cryptocurrency exchange with the most trading volume in the world, and its native token is BNB. Users of Binance have frequently been reassured of the platform's openness, but at the same time, the cryptocurrency has been taking a beating. However, in contrast to most other cryptocurrencies, BNB has maintained a relatively constant value. At the time of this publication, the token had a market price of $263, representing a weekly loss of 5%.
The fiasco with FTX highlights the need for greater openness among the cryptocurrency and blockchain industries. The proof-of-reserves system was implemented by the CEO of Binance, Changpeng Zhao, in an effort to restore consumers' faith in the market. Users will have a better understanding of how exchanges manage their funds after reading the PoR. Since then, CZ has been campaigning for other cryptocurrency exchanges to adopt a strategy that is comparable to it in order to promote transparency.
Experts are of the opinion that the current low level of confidence in cryptocurrencies will persist for the foreseeable future. Anthony Pompliano, an advocate of Bitcoin, asserts that the confidence game is done for cryptocurrencies. According to his point of view, the plummeting investor morale will drive more people to invest in bitcoin. He attributes this to the resiliency and straightforwardness of Bitcoin's design.
Aside from the opinions of industry professionals, BNB might not be immune to the current meltdown in the cryptocurrency market. It may take a longer amount of time for an exchange that has been facing regulatory hurdles everywhere to recover from a confidence crisis. Nevertheless, Binance has demonstrated resiliency and has established a global footprint that simply cannot be ignored. As a consequence of this, we might have no choice but to deal with the negative sentiment as it develops while the rest of the story for Binance and BNB plays out.
BNB has broken through the $266 level of support on the TradingView BNB/USD Chart.
After breaking below significant support at $266, BNB is likely to continue falling, according to the technical picture. The support that has turned into resistance is being retested by the cryptocurrency. The RSI is currently situated below the 50 point mark, which suggests that there is a greater number of sellers.
Should you purchase BNB stock?
After falling below $266, the price of BNB is in a precarious position. If the bulls are unable to defend the $266 level, the next potential support for the cryptocurrency is at $242.
Where can I purchase BNB?
eToro
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