Binance Coin (BNB) has seen a decrease in short bets on the futures market in recent weeks. On Monday, the token was trading at $244, lower than last week’s high of $261. The price has declined by 31% from its peak this year.
Most cryptocurrencies have seen a jump in price last week following the conclusion of the Ripple vs. SEC case. BNB, however, remained within a narrow range. The price of the stock jumped up to $261.40 before losing most of its gains.
The pressure on BNB is mainly due to the ongoing lawsuit brought by the Securities and Exchange Commission (SEC). The SEC accused Binance of committing more than 10 criminal offenses, including operating as a broker-dealer in the United States without following the law. It is still too early to tell how the lawsuit will develop or how long it might take, but legal experts believe that the SEC has a solid case against Binance.
Recently, there have been reports of BNB’s price in decline. Binance has also seen firings, leading to over 1,000 people being let go. Like other crypto companies, Binance is facing challenges during this Crypto winter.
Despite this, there is a likelihood that the company’s finances are improving as cryptocurrencies recover. There have also been inflows of funds over the past few weeks. According to DeFi Llama, this fund has seen inflows of over $2.9 billion in the last 30 days, bringing its total assets to over $64 billion.
Data compiled by Coin suggests that many players on the perpetual futures market have shorted BNB. The open interest in the market is heavily skewed towards short sellers. An expert commented to Coindesk:
“The sentiment has worsened due to the recent high-profile staff exits, inconsistencies related to BCH withdrawals from Binance.US and the pending Department of Justice case against Binance’s CEO Changpeng “CZ” Zhao.”
The daily chart of BNB shows a strong downward trend in cryptocurrency prices over the last few months. Most recent patterns have resembled a bearish pattern. Price action analysis suggests that this is a typical bearish sign. BNB has moved below both the 25-day and 50-day moving averages, indicating a negative breakout in the short term due to the flag pattern. If this occurs, the next level of interest will be $220.
If you are interested in buying BNB, you can do so on eToro or CEX.IO. However, it is important to understand the risks associated with investing in cryptocurrencies.
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