BNB price has soared by more than 26% from the lowest point in December.
Binance has seen over $7.5 billion in outflows in the past 30 days.
Inflows have risen by over $1.2 billion in the past 7 days.
BNB price has started the year well as inflows to Binance and its DeFi ecosystem rise. Binance Coin rose to $280 on Wednesday, which was the highest point since December 13. The coin has surged by more than 26% from the lowest level in December last year.
Binance inflows rise
The BNB coin came under intense pressure in the fourth quarter of 2022. Following the collapse of FTX that we covered here, investors started worrying that Binance could be next. Besides, Binance is an opaque company that has no headquarters and is not regulated.
The situation worsened when Binance’s auditor, Mazars, said that it will end its work on crypto companies. Binance’s proof-of-reserves numbers were also criticized for not being in-depth enough. The company is being investigated in the US. And earlier this week, it was reported that regulators were questioning hedge funds with exposure to Binance.
As a result, Bitcoin FUD trended on Twitter, pushing people to withdraw their funds from the exchange. Data published by DeFi Llama shows that investors have withdrawn over $7.35 billion from the exchange in the past 30 days.
Recently, however, with cryptocurrency prices rising, inflows have started to rise. Investors have added over $1.2 billion in Binance. They deposited $352 million in the past 24 hours. This increase has coincided with a period when coins are doing well, with Bitcoin sitting comfortably above $17,500.
The BNB price has also risen as inflows also moved to Binance’s DeFi protocol. Inflows to the ecosystem have risen by over 8% in the past 7 days to over $4.4 billion. These gains have been led by PancakeSwap, whose TVL rose by 9%. Wombat Exchange has also seen its TVL rise.
Still, there are questions whether these inflows will continue when cryptocurrency prices retreat. Besides, some analysts worry that this rebound is a dead cat bounce.
BNB price prediction
The four-hour chart shows that the BNB coin price has been in a strong bullish trend in the past few days. It managed to move above the important resistance level at $265, the highest level on December 16. It moved above the 25-day and 50-day moving averages.
The Relative Strength Index (RSI) rose above the overbought level. Therefore, I suspect that Binance Coin will retreat and retest the key support level at $265. On the other hand, a move above the important resistance point at $285 will invalidate the bearish view.
How to buy Binance Coin
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
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