Binance Coin price, like most cryptocurrencies in the market, is feeling the pinch of the FTX liquidity crisis. The native exchange token lost 6.6% of its value overnight before rebounding and spiking past $300. If the price holds above $260 for a few days, BNB could quickly return to its former grace and close the gap to $400.
FTX Status Update
Concerns over the alleged insolvency of FTX, an exchange owned by crypto billionaire Sam Bankman-Fried or SBF as he is commonly referred to in crypto cycles, have worsened since they first arose on November 2. FTX’s woes started when a balance sheet of Alameda Research, a hedge fund linked to FTX, leaked.
Following the news, the CEO of Binance, who was an early investor in FTX, said that he was going to liquidate the rest of his FTT holdings. This spooked FTX users, who began withdrawing billions of dollars from the exchange, adding to the alleged liquidity crunch. In a surprising move, SBF then announced that Binance was considering buying FTX.com, although this plan later fell through.
The collapse of FTX is ultimately good for Binance, despite the short-term price declines. BNB token is likely to benefit from this move as FTX users move to Binance for their crypto services.
Binance Coin Price Prediction: How Likely is The Recoil To $400?
Binance Coin is currently exchanging hands at just under $300 after ricocheting from short-term support at $260. The broken rising trend line is the biggest hurdle bulls are facing now. However, as soon it is pushed into the rearview, the journey to $400 could be rapidly accomplished.
The Stochastic RSI on the daily time frame chart reveals that BNB is extremely oversold after plummeting from the overbought region. Highly oversold markets hint at a bullish reversal because assets usually return to their fair value.
Traders looking forward to longing BNB must patiently wait for the Stochastic RSI to lift above the oversold territory and into the neutral area. The movement toward the mean line and later into the overbought region will cement the bulls’ presence in the market, which could validate the foreshadowed rally to $400.
A daily candlestick close above the rising trend line at $280 validates BNB’s move to $400. Traders must remember probable seller congestion areas likely to prevent the token from achieving its short-term and medium-term potential. For example, BNB may slow down to clear a confluence resistance at $295 created by the 50-day Exponential Moving Average (in red) and the 100-day EMA (in blue).
Meanwhile, on-chain data from Santiment reveals that large-volume investors, commonly referred to as whales, are taking advantage of the lower-priced BNB tokens to fill their wallets.
From the chart below, addresses with 100,000 to 1,000,000 currently hold 7.46% of the Binance Coin total supply, up from 7.39%, as recorded on November 7. This investor cohort has, since May, aggressively acquired BNB, unbothered by the rampant bear market forces and uncertainties. Therefore, the Binance Coin price is bound to regain its bullish momentum for the predicted move to $300 and its subsequent recovery phase to $400.
It is worth mentioning that from now on, investors could generally consider BNB slightly undervalued. The market Value Realized Value (MVRV) dons a -1.74 profit/loss ratio, suggesting that most BNB holders are now dealing with unrealized losses. An MVRV reading below 1 indicates that Binance Coin is undervalued.
Holders of BNB are unlikely to sell until the price recovers. If anything, many may consider buying more at the ‘discounted’ price level, building pressure behind BNB for the run-up to $400.
Alternative Investments Promising Massive Gains
Despite the market’s ongoing troubles, investors looking for gains in the nearer term may be interested in looking at newer altcoins, particularly those that are currently holding their respective presales.
Many of these hold out promise for significant returns, as seen earlier this autumn by Tamadoge (TAMA), which rose by as much as 1,800% (relative to its presale price) in October. This came after it was listed on the major crypto exchange OKX.
The three tokens listed below exhibit solid fundamentals, giving them a high potential for growth following their initial exchange listings. Moreover, these projects are in their presale stages, offering the most competitive market entry positions.
Dash 2 Trade (D2T)
Dash 2 Trader is a world-class crypto analytics and social trading platform that plans to make it easier for investors to make informed decisions using actionable market data. At the center of the Dash 2 Trade ecosystem is D2T – an ERC-20 token built on the Ethereum blockchain.
Users on this platform can develop and test trading strategies that allow them to take advantage of opportunities in the market.
D2T currently sells for 0.0513 USDT, but this price will go up to 0.0533 USDT in the next presale stage.
IMPT is a carbon credit marketplace where users can earn and trade NFT-based carbon offsets, which can also be obtained by shopping with a wide range of eco-friendly retailers. Since carbon credits are now tokenized as NFTs, it is possible to track them more transparently, which helps to address several issues that have previously plagued the carbon market.
IMPT’s presale has raised more than $12.6 million a few weeks after launch, making it one of the most popular crypto sales.
Calvaria (RIA) is a play-to-earn blockchain-based game in which players can earn rewards and battle with NFT-based collectible cards. One of its core distinguishing features is that it lets users play without requiring them to hold any cryptocurrency (although RIA can also be used to buy in-game items and for staking). This will potentially make it more accessible to a greater number of players, many of whom may have been put off blockchain-based gaming up until now by the need to hold crypto.
Its presale has raised more than $1.6 million and has just entered its fourth stage, with 40 RIA purchasable for 1 USDT.