BNB becomes a victim of extreme selling: Can it revive?
Binance, the world’s largest crypto exchange platform, has signed a letter to compete in buying another major crypto exchange platform, FTX. The Binance community members are excited because FTX is the third-largest exchange by volume. As a result, the BNB price will surge in the future because of the high demand in the market.
However, it is not the final deal because the Binance team will evaluate the balance sheet and conduct all the due diligence before the acquisition. On the other side, the value of the FTT token will plunge due to low demand, and the investors of FTT will sell their stake and buy BNB for the long term after the tentative acquisition.
BNB is the native coin on the Binance platform used to pay transaction fees. Besides that, BNB can also be used as a currency on different websites. It is also used to send and receive money in a decentralized manner without the interference of any bank.
Many people treat it as a digital asset like Bitcoin, which has more value than many other cryptocurrencies. However, by investing in BNB, you cannot claim the profit of the Binance platform because BNB is a native coin and not a fractional share of Binance company.
At the time of writing this post, BNB was trading around $315.7. The last daily candlestick (November 08, 2022) suggested a change in momentum with increased volume for the short term. It suggests a huge selling pressure in the last few days.
As a result, BNB might test the $290 level and consolidate within a range. Overall, the daily chart is close to turning bearish. BNB is facing extreme selling pressure but may follow the uptrend in the next few weeks. However, check out our BNB coin predictions to know whether you should invest at the current value or not!
On the weekly chart, BNB candlesticks are forming in the upper Bollinger Bands. This week it has formed a red bearish candle that suggests a change in momentum for the long term as well. BNB may take support around $280, which could be an ideal time to invest for the long term. We think you should wait for a few weeks and invest around a support level for the long term.