The unexpected resignation of Binance exchange CEO Changpeng Zhao (CZ) has sparked a sell-off in the BNB token, leading to a significant decline in its value over the past 24 hours. On-chain data suggests that funds are flowing out of Binance in large volumes, exacerbating the BNB price drop
The unexpected resignation of Binance exchange CEO Changpeng Zhao (CZ) has sparked a sell-off in the BNB token, leading to a significant decline in its value over the past 24 hours. On-chain data suggests that funds are flowing out of Binance in large volumes, exacerbating the BNB price drop. Technical indicators show that traders have been favoring selling rather than buying BNB since CZ's resignation announcement.
BNB Takes a Hit Amidst CZ's Resignation
As of press time, each BNB token is priced at $235.14, close to its one-week low. When news of CZ's resignation broke, the BNB price dipped to a low of $242, its lowest point in over 20 days.
Funds Flowing Out of Binance in Large Volumes
Information retrieved from on-chain data provider Nansen reveals that Binance's fund outflow has surged from a net negative $10,000 to $45 million in a short span of time.
Additionally, Kaiko research analyst Riyad Carey noted on Twitter that Binance's 1% market depth dropped from $180 million to $110 million in roughly two hours before rebounding, while its 0.1% market depth also declined from $100 million to $85 million during the same period.
Technical Indicators Flash Bearish Sentiment
Chaikin Money Flow (CMF): BNB's CMF value stands at -0.18, indicating significant money flow exiting the spot market.
Key Momentum Indicator (KMI): BNB's KMI is below its center line, suggesting that investors are more likely to sell.
Relative Strength Index (RSI): BNB's RSI is at 45.16, indicating that the market is in an oversold condition.
Money Flow Index (MFI): BNB's MFI is at 40.91, further confirming the heavy outflow of funds.
BNB's Aroon downline has spiked to 92.86%, suggesting a strong downtrend. This indicates that the recent lows were reached relatively recently.
Investors are heavily selling off BNB due to concerns about the potential ramifications of CZ's resignation on its value.
BNB has taken a substantial hit following CZ's resignation, with technical indicators showing strong bearish sentiment. Funds are flowing out of Binance in large volumes, adding to the downward pressure on BNB's price. It remains uncertain when BNB's value will recover, and investors should monitor market dynamics and news closely.
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