After the back and forth of accusations and denials, Binance Coin [BNB] could be on the eve of a further decline. This was due to sudden unexpected transfers of dormant addresses in the wake of an open feud between Changpneng Zhao (CZ) and Sam Bankman-Fried (SBF).
Interestingly enough, there was hardly any insight into the impact on BNB until a tweet from Lookonchain emerged.
— Lookonchain (@lookonchain) Nov 8, 2022
Here is AMBCrypto’s Price Prediction for Binance Coin [BNB] for 2023-2024
According to the on-chain analyst, three dormant addresses transferred BNB worth $89.5 million in the Binance exchange. Usually, transactions from dormant addresses don’t come out of the blue.
However, the occurrence of this event amid a heated accusation about the FTX Token [FTT] could indicate the holder’s willingness to sell long-term investments. Therefore, BNB could be about to lose more than the 3.38% 24-hour decline. But are there any signs that the exchange token could withstand the sell opportunity or not?
You hardly have to worry
When reviewing the BNB on-chain data, it appeared that transactions could have some impact on the ecosystem. This was because the 90-day dormant circulation showed no noticeable peaks. According to Saniment, the circulation within the period was 3,825.
Compared to the circulation of 86,700 on November 1, this was a clear decrease. Due to the decline, the possibility of a further downtrend for BNB may not be a result of these trades.
In addition, there is no significant answer of investors with large BNB positions. According to Santiment, there were only three $1 million transactions in the BNB chain at press time. This indicated that BNB whales preferred to hold onto their property regardless of the feud between the two CEOs.
As for active addresses, it was down from the number on November 6. With 24-hour active addresses dropping to 4,678, it was clear that there had been less successful transactions in the chain. Likewise, this implied that newly created BNB addresses had withstood any buying and selling interaction.
Where are you going?
On the charts, BNB seemed to struggle between a downtrend and maintaining neutrality. Based on indications from the Directional Movement Index (DMI), sellers had the market under control. This was due to the negative DMI (red) of 29.34 which held its position above the buyers (green).
However, the Average Directional Index (ADX) seemed to offer buyers some peace of mind. This was because the ADX (yellow), despite a strong directional move, appeared to be considering the downside.
Interestingly enough, it seems that BNB had enough strength to withstand the reds. When evaluating the exponential moving average (EMA), the four chart held a chance of recovery. Press the 20 EMA (blue) above the 50 EMA (orange).
So, investors fearing a collapse may have a chance to take advantage of a rebound from the previous decline.
This post Could CZ-SBF’s struggle lead to BNB starting a losing streak? judge…
was published first on https://ambcrypto.com/can-the-cz-sbf-tussle-lead-to-bnb-setting-out-on-a-losing-streak-assessing/