Is Binance protecting BNB Coin from Further Correction?

Binance Coin (BNB) the native cryptocurrency of crypto exchange Binance has witnessed major selling pressure amid the recent market turmoil with the BNB price correcting more than 13% over the last week.

After the SEC revealed its case against Binance on June 5, the value of BNB experienced a significant decline, plummeting by over 30% within the past year. Binance, the central entity responsible for BNB token and BNB Chain development, is confronted with SEC accusations of managing and benefiting from an unregistered security.

The digital asset exchange, led by Changpeng Zhao (CZ), who identifies as a "holder of BNB and BTC," has witnessed the negative news and the broader market downturn adversely impacting the BNB price. Presently valued at $210.0, BNB holds the fourth spot in terms of market capitalization at $32 billion.

This translates to a 13% loss over the past week and a 14% decrease within the last 30 days. As a result, the BNB price has now dropped under its 200-day moving average (DMA).

Some market analysts have shared concerns over the sharp fall in the BNB value in recent times. The analysts believe that if the value of BNB declines, there is a possibility that Binance may sell off Bitcoin to uphold BNB's price. This approach remains viable until it reaches its limit. In the event of its failure, we might encounter a scenario akin to what happened with FTX, but on a larger scale.

Note that this is just a speculation at the moment, and not a surety that an FTX-like situation will also pan out with Binance. Currently, there seems to be a considerable amount of fear, uncertainty, and doubt (FUD) circulating, although the memory of the FTX situation is still vivid in the minds of many. To offer context, three years ago, BNB was trading at a mere $22.

Furthermore, BNB's decline from its all-time high has been less than 70%, which is notably lower compared to the over 90% drop experienced by many DeFi tokens from their peak values.

Nevertheless, the concern persists due to the strong connection between BNB and Binance, as well as the extensive integration of BNB in its DeFi offerings. Keeping a watchful eye on the situation might be a prudent approach.

Recent events have reignited the watchfulness within the Venus community, as the solvency of the exploiter's account linked to the infamous BNB Chain Bridge hack approaches a critical point. Data provided by PeckShield indicates that the health rating of the BNB Bridge exploiter on Venus currently hovers at a precarious 0.99. With BNB's value dropping to $207.9, apprehensions about additional price deterioration heighten the susceptibility of this particular address.