BNB Price Drop: Binance Under Scrutiny
Binance Coin (BNB) has experienced a recent price decline, leaving investors questioning the cause. While the broader market shows downward pressure, BNB's price fluctuation within a narrow range adds to the uncertainty.
Binance and Market Manipulation Allegations
The BNB price drop coincides with accusations against Binance of orchestrating market manipulation. Reports link Binance to aggressive trading tactics used to manipulate the JELLYJELLY memecoin price on the Solana blockchain. Lookonchain reported a whale investor using 124.6 million JELLY tokens (worth $4.85 million) to manipulate the price. This resulted in HyperLiquid, a liquidity provider, absorbing a $15.3 million loss. The incident draws parallels to the FTX collapse, raising concerns about large exchanges potentially targeting competitors using their liquidity.
The funds used to open $JELLY(jellyjelly) positions and attack #Hyperliquid were withdrawn from #OKX and #Binance.https://t.co/X3bgxk1IQx pic.twitter.com/DU8WshGcoz
— Lookonchain (@lookonchain) March 26, 2025
Blockchain analysis by Zachxbt suggests Binance wallets were involved in funding these activities. Binance's rapid expansion of JELLYJELLY contracts further fueled suspicion of deliberate harm to HyperLiquid. Analyst MartyParty noted that Binance's decision to list JELLYJELLY perpetual contracts intensified market pressure against HyperLiquid.
Binance Employee Suspended for Insider Trading
Adding to the scrutiny, a Binance employee was suspended for alleged insider trading. The employee used confidential information to profit from a token launch before its public announcement. While Binance swiftly suspended the employee and verified no further such activity occurred, the incident undermines trust in Binance's operational integrity.
BNB Price and Technical Indicators
BNB's price is currently trading between $600 support and $672.5 resistance. The 50-day Simple Moving Average (SMA) is below the 200-day SMA, forming a 'Death Cross,' indicating weakening short-term market strength and potential further price declines. The Relative Strength Index (RSI) is at 54.07, currently neutral, but a drop below 30 could signal further price drops.
While the RSI isn't currently in overbought or oversold territory, the negative sentiment surrounding Binance and these recent allegations counteract any bullish momentum.
Disclaimer: This analysis reflects current market conditions and should not be considered financial advice. Conduct thorough research before investing in cryptocurrencies.