Recent discussions within the cryptocurrency community have brought to light allegations of market manipulation involving the Binance [BNB] exchange and Wintermute.
An examination of their Solana [SOL] balances has unveiled synchronized activity that hints at the Market Maker (MM) possibly being complicit in the price drops.
Initially, Binance’s SOL balance surged to 1.7 million before drastically decreasing to 0.5 million, while Wintermute’s balance peaked at 1.2 million and then plummeted to 0.6 million.
This sequence suggests that around one million SOL was transferred to trigger a price crash from $300 to $150.
A similar pattern was observed across various altcoins, resulting in a total wipeout of over $110 billion in the altcoin market, as pointed out by analyst Marty Party on X (formerly Twitter).
If the alleged market manipulation by Binance persists, it could lead to a further drop in SOL’s price to $140, potentially causing widespread panic selling in the broader crypto market.
Liquidation Events and Trading Volume in the Chain
Following these developments, BNB did not witness the same level of capitulation seen in other altcoins. A heatmap analysis highlighted crucial liquidation levels ranging between $640 and $660 before a sudden decline brought the price close to $620.
This rapid decline to $620 held significance for BNB, likely triggering numerous stop-loss orders and indicating a potential support level.
A sustained breakthrough above these levels could signal a robust recovery phase, with a possibility of challenging higher resistance levels nearing $680.
On the contrary, a failure to reclaim the $640 level might lead to BNB testing lower support levels around the $600 mark.
As for on-chain trading volume, PancakeSwap, a decentralized exchange based on BNB, witnessed a surge, dominating with a daily trading volume of $2.1 billion.
This figure outpaced Uniswap’s [UNI] $607.2 million, Raydium’s [RAY] $439.1 million, Hyperliquid’s [HYPE] $312.5 million, and PumpDotFun’s $98.7 million, totaling $1.4575 billion.
The market share of PancakeSwap was boosted by its low fees and BNB Chain’s efficiency, marking a milestone in the growing DeFi adoption on the BNB Chain. PancakeSwap’s volume captured a 21.87% market share.
If this trend persists, PancakeSwap may strengthen its position, although volatility remains a concern as competitors adapt to the changing landscape.
Anticipated Reaction of BNB’s Price
By correlating these events with the price movements of Binance Coin, a sharp decline was evident, reaching a critical support zone at $594.64, identified as a Fair Value Gap (FVG).
A potential rebound from this level could lead BNB to test resistance levels near $612 and subsequently $640.
However, a failure to hold this support may result in a further slide in price towards lower support levels around $580 or $560, testing previous lows. Breaching these levels could push BNB to levels below $500.
The swift drop into the FVG indicates a notable reaction, urging investors to exercise caution amid the prevailing bearish momentum, particularly given the current backlash faced by Binance from the community.