The last several weeks have been challenging for both Binance, the biggest cryptocurrency exchange, and its native coin BNB. However, on January 9th, BNB finally crossed its major resistance level and reached $283.03 after trading in a constrained range for three to four weeks straight.
Over the past few weeks, the token’s price established a support level between $240 to $250. Above the $260 level, a strong recovery trend began on January 6th.
There was a further push above the $270 resistance level on January 8th, resulting in the price reaching above the $280 level the following day.
According to the data from CoinMarketcap, BNB is currently trading at $278.25, with a slight rise in the last 24 hours, while a considerable gain in the previous seven days, about 10%.
Optimistically, the bulls are aiming for $280. If this price level is broken, the next significant barrier is located near the $285 level, where the token could possibly surpass $300 in the upcoming days.
If BNB is unable to push through the $280 resistance level, a sharp downward correction may occur. If this happens, the initial support should be near the $265 mark.
Moreover, the first major level of support will be found at $240. Should the support fail and break below $240, there may be an extended bearish run heading toward $235.
Binance’s BNB & BUSD In Trouble
One can easily recognize investors’ waning faith in the biggest crypto exchange when looking at the values of Binance Coin (BNB) and Binance USD (BUSD), the two tokens associated with the exchange.
Forbes reported yesterday that BNB has plummeted by 29% in the past two months, leaving an estimated 29 million tokens at Binance, a 51% reduction compared to what the exchange declared on November 10th. Similarly, the amount of BUSD stablecoins at the company has dropped by an astonishing 40%.
Additionally, over the past few months, Binance has not only experienced a sharp decrease in net assets by 24% but also experienced a drastic fall in investments in prominent tokens such as MATIC, APE, and GALA by 40-50%. Evidently, the trust and influence of the largest exchange have taken a hit.
Tronweekly also reported yesterday that over the past two years, Binance experienced a significant increase in annual revenue, growing tenfold. However, by 2022, despite reaching a revenue of over $12 billion, the exchange incurred losses of the same amount within a period of just 60 days.