Binance Coin sustains momentum as controversy rocks exchange’s recent listing

  • Some comments from the crypto community suggest that there could be a trading abettor after Binance listed RPL.
  • The BNB momentum remained bullish although the volume flow was reduced.

Binance, the exchange backing Binance Coin [BNB] is notorious for listing a lot of emerging cryptocurrencies, and its 18 January addition of Rocket Pool [RPL] aligned with the known behavior. However, the world’s largest exchange listing of the decentralized Ethereum [ETH] staking pool token was not without fuss. 

According to “smartmoney” analyst, Lookonchain, three separate addresses bought RPL before the listing. This same set sold the asset as soon as the value increased.

Fingers point to a co-conspirator

The revelation raised eyebrows around the crypto community as some pointed to possible insider trading in the firm. According to the details of the transaction, one address deposited 200,000 Tether [USDT] in exchange for RPL.

Within minutes, it sold back for $255,398. The other two exchanged ETH for the token and made profits of $76,000 and $318,240 respectively. While it remained uncertain if it was indeed a case of insider trading, comments under the revelation seemed to have judged the scenarios as such. 

But Binance may not be able to afford to add an insider trading controversy to its list of challenges. The last time the exchange had such issues was in 2021 but it was able to overcome the hurdle.

Recently, the United States SEC confirmed that the exchange was on its radar. Also, the country’s Department of Justice (DOJ) contemplated prosecuting Binance due to some illicit funds allegations.

However, the cryptocurrency in question could maintain the green bars it produced for long. According to CoinMarketCap, RPL was exchanging hands at $33.89 at press time. This was after it had lost 16.83% of its value in the last 24 hours.

BNB in the eyes of watchdogs

For BNB holders, a regulatory hammer hitting the exchange could spell doom for the coin. In wake of that, BNB followed the first notable market downturn of 2023. In the last 24 hours, the coin’s value decreased by 3.91%. 

On the daily chart, the Moving Average Convergence Divergence (MACD) displayed BNB’s strength in sustaining the bullish momentum. This was due to the dynamic blue line positioning over the orange.

An interpretation of this stance admits to buyer control. Additionally, the MACD remained above the zero level, further indicating that sellers were far off from regaining authority.

Per the above chart, the On-Balance-Volume (OBV) was 543.75 million. At this point, the technical indicator suggests that the crowd sentiment was not entirely bullish on BNB since the volume flowing was minimal. Hence, BNB might have challenges in its push for a price uptick.

Source : ambcrypto

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