Binance coin recovered slightly on Monday after a losing streak
Crypto analyst says Binance could collapse similarly to Terra Luna
The cryptocurrency is under pressure due to concerns about centralised exchanges
Binance (BNB/USD) traded up marginally on Monday, overcoming an accelerated selloff the past week. The selloff has been sparked by concerns of market turmoil for the world’s largest crypto exchange.
According to Delphi Digital, a crypto insights firm, Binance recorded over $5 billion in crypto outflows on December 13th and 14th. The outflows happened amid concerns about the insolvency of Binance following the collapse of FTX. Binance produced its proof of reserves to assure its stability, but this didn’t calm the markets. As CoinJournal reported, auditor Mazars faulted the reserves, and this caused a further confidence crisis. A crypto analyst now thinks Binance could head the LUNA direction.
Remember the famous Terra Luna crash? Perhaps it could sound too alarming to think Binance could have a similar fate. But pseudonymous crypto analyst Smart Contracter says the multi-year trend of BNB versus BTC mirrors that of Terra Luna. Using the Elliott Wave theory, the analyst says BNB/BTC has completed Elliot’s five-wave cycle. He says this is the same price action LUNA printed before crashing in May. Smart Contracter says BNB is set for a reversal at $0.007378 BTC, coinciding with the 61.8% Fib level. The analyst says BNB could fall to $80-$100 next.
BNB recovering above the 23.6% Fib level amid bear pressure
BNB/USD Chart by TradingView
We apply the Fibonacci retracement levels, with the June bottom as the swing low and the November top as the swing high. From the Fib levels, BNB lost dynamic support at 78.6%, 61.8%, 50%, 38.2%, and 23.6% Fib levels. The latest recoveries have pushed the price above the 23.6% Fib level.
However, BNB should be considered bearish as long as the price remains subdued by $266, support-turned-resistance.
What next for BNB?
BNB could remain under bear pressure as long as negative cryptocurrency news emerges. In a bear scenario, BNB stares at $200. The price has to move above $266 to consider the upsides possible.
Where to buy BNB
Ava Financial Ltd operates the AvaFX and AvaTrade forex brands and all business associated with them. The company has a branch office in Dublin, Ireland, which enabled it to get an operational license from the Irish authorities.
Buy BNB with AVATrade today
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
Buy BNB with Binance today