Binance Coin (BNB) Feels the Pressure as Bitcoin and Crypto Market Dip
Aiswarya Gopan • 2 min read
Binance Coin (BNB) is trading under pressure on Friday after news of yet another major exploit that drained millions of dollars from a DeFi project on the Binance Smart Chain (BSC). At the time of writing, BNB/USD is trading at around $325.
The sentiment has soured following reports about BurgerSwap on the BSC losing $7.2 million in the form of seven different cryptocurrencies. The Flash Loan attack was one of several recent exploits targeting the Binance Smart Chain whose popularity has been on the rise among new and existing DeFi projects lately. These kind of exploits reduce investor confidence in the network and drive users away towards safer alternatives, and the reduced transaction activity on the blockchain network can weigh heavily on the token – the BNB in this case.
Binance Coin is also facing downward pressure on account of the overall mood in the crypto market after Bitccoin prices slid lower by nearly 9% over the past 24 hours alone. The moves in the market leader often dictate the sentiment in the market and drive similar price action in other digital currencies, including BNB/USD.
The price of BNB is especially sensitive to the market sentiment as bearish moves reduce scare investors from trading in crypto exchanges like Binance. Reduced trading activity on the Binance exchange drives the value of the digital asset lower.
Key Levels to Watch
On the H4 chart of BNB/USD, moving averages and leading technical indicators MACD and momentum are signaling a bearish bias for now. The price sits below the support level at $387 and just a little above the next support at $300, which indicates that there is ample room for the price of Binance Coin to fall further in the near-term. If, on the other hand, trading activity picks up over the weekend, we could see BNB make an attempt at climbing higher and testing the key $400 level.