BNB Drops 10% as CZ Responds to Unexpected Pardon – What It Means for Binance

Binance Coin (BNB) has experienced a significant drop of nearly 10%, struggling to maintain momentum as traders show caution in the derivatives market. CZ, the co-founder of Binance, has addressed the surprise surrounding a recent presidential pardon, denying any connections to Donald Trump.

Key Takeaways

BNB has declined by almost 10% after failing to break through the $1,000 level.
Open interest in the derivatives market remains stagnant at approximately $866 million, indicating trader caution and a lack of aggressive positioning.
The general market sentiment appears to be one of hesitance, which could lead BNB to drift lower without a boost in demand.

Binance Coin (BNB) is experiencing another downturn, having dropped close to 10% this week. The derivatives market reflects this uncertainty among traders.

binance Source: CoinMarketCap

This price drop coincides with CZ's reaction to unexpected news of a presidential pardon, where he expressed surprise and clarified that he has no ties to the Trump family.

binance coin

Weakening Momentum for BNB

BNB has seen a nearly 10% decline this week, and the technical indicators support this slowdown.

On the daily chart, the price struggled to recover above the $1,000 mark, and trading volume remained low, suggesting traders are hesitant to buy during price dips.

Source: TradingView

The Relative Strength Index (RSI) is sitting at around 41, which is bearish but not high enough to signal a complete capitulation. Meanwhile, the Moving Average Convergence Divergence (MACD) is still negative, indicating that the downtrend is prevailing as of the current analysis.

In simple terms, this reflects a controlled decline. However, unless demand increases, BNB may continue to slide until finding solid support.

Derivatives Market Remains Dormant

This week, open interest in the derivatives market has barely changed, remaining around $866 million. The charts show a consistent level reflecting traders' hesitance to engage aggressively.

binance Source: Coinalyze

The aggregated funding rates also hover near 0.0005%, indicating a lack of leverage pressure from either long or short positions. There are no significant investments being made in either direction.

Despite BNB's recent price fall, derivatives traders seem to prefer a wait-and-see approach, which has kept market activity quiet and momentum weak.

CZ Addresses Recent Controversy

Adding to the surrounding narrative, CZ has spoken out regarding his unexpected presidential pardon.

In an interview with Fox News, he expressed his surprise at the decision and denied any personal or professional connections to Donald Trump and his family. He explained that his legal team submitted the pardon request months prior, without knowledge of when it might be approved.

“There was no indication of how far along it was, etc. Then, it happened one day,” he stated.

This clarification comes as pressure builds on BNB's performance. Traders are likely monitoring whether this controversy will impact Binance's broader ecosystem.