Is BNB safe from crypto meltdown?

The collapse of the once “healthy” cryptocurrency exchange, the FTX exchange, has brought new tremors to the sector. The collapse was unexpected for the once-thriving cryptocurrency exchange that bailed out troubled companies. The crisis has caused a massive cryptocurrency depreciation, and exchange-linked coins are not spared.But the damage FTX caused was huge Cryptocurrency like BNB?

BNB is the native token of Binance, the world’s largest cryptocurrency. While Binance has often reassured users about the transparency of its platform, its token has also taken a hit. However, compared to other cryptocurrencies, BNB is very stable. The token is trading at $263 at the time of writing, down 5% in a week.

The FTX debacle calls for deeper transparency in the crypto and blockchain industry. To restore confidence in the market, Binance CEO Changpeng Zhao has introduced proof of reserves. PoR helps users understand how exchanges process funds. CZ has since advocated for similar models by other cryptocurrency exchanges to increase transparency.

As it stands, cryptocurrencies remain untrustworthy and experts believe this trend will continue for some time. Bitcoin enthusiast Anthony Pompliano says the crypto confidence game is over. In his view, the loss of investor morale will make more investors turn to bitcoin.

Aside from expert opinion, BNB may not be safe from a cryptocurrency meltdown. For exchanges facing regulatory hurdles everywhere, it could take longer for the confidence crisis to abate. Still, Binance has demonstrated resilience and a global footprint that cannot be ignored. As a result, we may have to deal with weaker sentiment while Binance and the rest of BNB unfold.

BNB loses support at $266

BNB/USD chart by TradingView

From a technical perspective, BNB may fall after losing critical support at $266. Cryptocurrencies are retesting from support to resistance. The RSI is below the midpoint, which indicates that there are many sellers.

Should I buy BNB?

BNB Price Vulnerable after breaking below $266. If the bulls fail to defend $266, the next potential support for the cryptocurrency is $242.

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