Binance Coin Price Prediction as BNB Stays Above $250 – Can it Spike to $400 soon?
Binance Coin price, like most cryptocurrencies in the market, is feeling the pinch of the FTX liquidity crisis. The native exchange token lost 6.6% of its value overnight before rebounding and spiking past $300. If the price holds above $260 for a few days, BNB could quickly return to its former grace and close the gap to $400.
Concerns over the alleged insolvency of FTX, an exchange owned by crypto billionaire Sam Bankman-Fried or SBF as he is commonly referred to in crypto cycles, have worsened since they first arose on November 2. FTX's woes started when a balance sheet of Alameda Research, a hedge fund linked to FTX, leaked.
Following the news, the CEO of Binance, who was an early investor in FTX, said that he was going to liquidate the rest of his FTT holdings. This spooked FTX users, who began withdrawing billions of dollars from the exchange, adding to the alleged liquidity crunch. In a surprising move, SBF then announced that Binance was considering buying FTX.com, although this plan later fell through.
The collapse of FTX is ultimately good for Binance, despite the short-term price declines. BNB token is likely to benefit from this move as FTX users move to Binance for their crypto services.
Binance Coin is currently exchanging hands at just under $300 after ricocheting from short-term support at $260. The broken rising trend line is the biggest hurdle bulls are facing now. However, as soon it is pushed into the rearview, the journey to $400 could be rapidly accomplished.
The Stochastic RSI on the daily time frame chart reveals that BNB is extremely oversold after plummeting from the overbought region. Highly oversold markets hint at a bullish reversal because assets usually return to their fair value.
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