- A cryptocurrency analyst highlighted how important it is that BNB defends the $212 level.
- There is speculation that U.S. regulatory bodies are strategically reducing their holdings of BNB to drive CZ out.
- Over the past 24 hours, BNB’s price dropped by 1.14%, but was still able to stay above $212.
The price of Binance Coin (BNB) has maintained a level above $212 due to specific factors influencing the market, according to a Twitter post shared by a cryptocurrency analyst yesterday. One of these factors is the existence of a BNB collateralized loans offered by Binance, which has a liquidation threshold at $212.
This threshold was initially set at $220 in June this year, but it has been adjusted downward to $212. The analyst also pointed out in his tweet that Changpeng Zhao seems to be taking measures to safeguard the exchange’s stability. He has been observed selling Bitcoin (BTC) from a wallet address for TUSD (TrueUSD) and then using the proceeds to purchase BNB.
This strategy appears to be aimed at preventing a critical margin call situation on the Binance chain. Additionally, the analyst referred to the fact that there is speculation that U.S. regulatory bodies are strategically reducing their holdings of BNB, which are under the control of the U.S. Marshals.
This concerted effort might be intended to force the liquidation of the BNB loan. The Twitter post highlighted the fact that this could ultimately put pressure on the Binanace CEO and compel him to exit the industry.
Most cryptocurrencies are still taking hits after the latest market crash. BNB is still one of these tokens as CoinMarketCap indicated that BNB’s price slipped by 1.14% throughout the past day of trading.
As a result, BNB was trading at $215.46 at press time, which meant that it was able to keep its head above the critical $212 level highlighted in the Twitter post. Along with BNB’s price drop, the cryptocurrency’s 24 hour trading volume dropped by 47+%, which left it standing at $441,165,350.
The market crash also negatively affected BNB’s weekly performance as its price fell by more than 10% over the past seven days. Having achieved its peak value of $690.93 in May 2021, the utility token’s price has undergone a significant decline of over 68% to trade at its current level.
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