Journalist
Posted:
- BNB has seen a double-digit decline following CZ’s departure from Binance.
- Binance has recorded a surge in outflows over the past 24 hours.
BNB coin [BNB] has lost 11% of its value in the last 24 hours, making it the second-worst performing coin in the top ten by market cap at the time of writing. CoinMarketCap.
Source: CoinMarketCap
This follows the unexpected news of Changpeng Zhao’s resignation as CEO of Binance, which is part of the $4 billion settlement between US regulators and its cryptocurrency exchange.
Today I stepped down as CEO of Binance. Admittedly, it wasn’t easy to let go emotionally. But I know it’s the right thing to do. I made mistakes and I have to take responsibility. This is what is best for our community, for Binance and for myself.
Binance is no longer a baby. It is…
— CZ 🔶 Binance (@cz_binance) November 21, 2023
The decline in BNB’s value over the past 24 hours has been exacerbated by the surge in outflows from Binance since Zhao announced his resignation.
Information retrieved from the data provider in the chain Nansen showed that Binance’s cash flow plummeted from a net negative $10,000 to $45 million within a short period of time.
Source: Nansen
Also, Kaiko’s research analyst Riyad Carey noted in a post on to $85 million. during the same period.
Binance’s 1% market depth dropped from $180 million to $110 million in about 2 hours. Has since jumped back to $150 million.
The 0.1% low dropped from $100 million to a low of $65 million, now back to $85 million. pic.twitter.com/aGkxLl1oB6
— Riyad Carey (@riyad_carey) November 21, 2023
BNB suffers from the “crimes” of CZ
At the time of writing, the price per BNB coin was $235.14, the lowest level in the past week. When news of Mr. Zhao’s resignation broke, the currency’s price fell to a low of $242, the lowest in the past 20 days.
AMBCrypto’s review of trading activity over the past 12 hours revealed a significant increase in BNB distribution. Investors fearing a domino effect from Zhao’s resignation on BNB’s value have increasingly sold their holdings.
The coin’s Chaikin Money Flow, which measures the volume and price of an asset to assess the balance between buying and selling pressure, was noted below the zero line at the time of writing.
With a value of -0.18, BNB’s CMF showed that a lot of liquidity disappeared from the currency’s spot market.
Likewise, key momentum indicators were below their respective midlines, indicating that investors preferred to sell their BNB coins. The alt’s Relative Strength Index (RSI) was 45.16, while the Money Flow Index (MFI) was 40.91.
At these values, these indicators indicated that most traders have decided to sell rather than buy since Zhao’s resignation.
Read BNB chain [BNB] Price prediction 2023-24
Furthermore, there was a sharp increase in BNB’s Aroon Down Line (orange) to 92.86% over the past 12 hours. This indicator is used to identify the trend strength and potential trend reversal points in the price movement of a crypto asset.
When an asset’s Aroon Down line is near 100, as in this case, it indicates that the downtrend is strong. It also suggests that the most recent low was reached relatively recently.
Source: BNB/USDT on TradingView