- BNB coin price has formed a triple-top pattern on the daily chart.
- Binance has seen millions of dollars' worth of outflows in the past 7 days.
- There are concerns about the company's regulatory situation.
Binance Coin retreated to the lowest point since February 13th amid serious concerns about Binance, the biggest exchange in the world. BNB coin dropped to a low of $285, which was about 16% below the highest point in February.
Binance outflows increase
The BNB coin plunged as the amount of money stored in Binance declined sharply. Data compiled by DeFi Llama shows that the exchange suffered outflows worth over $222 million in the past 24 hours. It has already lost over $948 million in the past 7 days, bringing the total amount of assets to over $68 billion.
Clean assets, which exclude all assets issued by the company, retreated to about $51.6 billion. On the other hand, most exchanges have seen inflows in the same period, with OKX, Bitfinex, and Crypto.com seeing millions of inflows in the past 24 hours.
There are numerous reasons why Binance has seen a jump in outflows in the past few weeks. First, in February, New York regulators announced that they had stopped the issuance of Binance USD, a stablecoin issued by Paxos.
Second, the latest reason for the Binance Coin plunge is an exclusive report by the WSJ. The report noted that Binance created a workaround to avoid US regulations. According to the report, which had access to internal messages, Binance came up with Binance US as a way of avoiding US detection. The two companies, however, are more linked than earlier thought.
Read more: How to buy Binance Coin.
Therefore, there is a likelihood that Binance will continue facing significant investigations by American authorities. Recently, there were rumors about a likely settlement, where Binance would pay a certain amount of money.
Further, the BNB price retreated as the total value locked (TVL) in its ecosystem pulled back. It now has $4.75 billion in assets, making it the 3rd biggest chain in the world after Ethereum and Tron. Like other coins, it is also plunging following the collapse of Silvergate Capital.
Binance Coin price prediction
The daily chart paints a great picture of what is happening. As you can see, the BNB coin price faced a significant resistance at $336, where it failed to move above on February 4th, August 9, and May 22. This means that it has formed what looks like a triple-top pattern.
Binance Coin also moved below the 25-day and 50-day moving averages as the two lines made a bearish crossover pattern. The Relative Strength Index (RSI) and the Stochastic Oscillator have continued falling.
Therefore, the BNB coin will likely continue falling as sellers target the next key support level at $231, the lowest point on February 13.
