Data shows traders have mixed emotions about BNB’s future given Binance’s regulatory troubles and new mandatory KYC policy.
Binance Coin (BNB) rallied 30% in two weeks, but the fourth largest cryptocurrency by market capitalization seems to be struggling to break the $450 resistance. Coincidently, this is the same top from June 3, which was followed by a 48% correction down to $225.
Given the similarity of the situation when compared to previous instances, investors have reasons to doubt the recent performance, especially as Solana (SOL), a competing smart contract platform, reached an all-time high on August 18.
The move was partially attributed to a recent $70-million crowdfund to support its decentralized exchange (DEX), Mango Markets, and the launch of a well-subscribed NFT project.
BNB reacted negatively after the exchange suddenly halted stock tokens trading on July 16, and investors’ increased concern that regulatory hurdles would severely impact the exchange’s growth.
On August 18, De Nederlandsche Bank, the Netherlands’ Central Bank, issued a warning to Binance after concluding that the exchange offered crypto services to local residents. The authority alleges that the company is not acting in compliance with the country’s Anti-Money-Laundering and Anti-Terrorist-Financing Act.
Between Aug. 11 and Aug. 17, there was a slightly bullish 0.10% positive funding rate, but it dissipated over the past few days. Although entirely different from the bearish negative 0.15% indicator seen in late July, the current reading does not transpire confidence from leverage traders.
Derivatives indicators show zero signs of bullishness from investors. It is also clear that retail traders and whales currently have little confidence that the $450 level will be broken in the short term.