Binance Coin Faces Bearish Pressure Amid Declining Prices and Regulatory Concerns
In the recent trading session, the value of Binance Coin (BNB) has continued to decline, breaking the key $250 support level against the US Dollar. This downward trend has been further exacerbated by Binance’s ongoing legal battle with the SEC, which is impacting BNB and exerting bearish pressure on leading cryptocurrencies like Bitcoin and Ethereum. Let’s dive into the technical indicators to get a clearer understanding of the current situation.
Technical Analysis:
As depicted on the daily chart of the BNB/USD pair, the price of BNB is currently trading below $250 and the 100-day simple moving average. A significant bearish trend line has formed, offering resistance near $280. This technical indicator suggests that BNB could suffer further losses if it breaks the $220 support zone.
Recent Performance:
Over the last few days, BNB has witnessed a substantial decline from its previous position well above $280 against the US Dollar. The SEC lawsuit against Binance took a heavy toll on BNB’s performance, contributing to the prevailing bearish sentiment in the market. The price declines were significant, with BNB seeing a clear break below the $280 and $250 levels, ultimately testing the key $220 support zone.
Current View:
BNB has bottomed out near $221.2 and is currently consolidating losses. On the bright side, the token is facing resistance around the $240 level, followed by a more substantial resistance at $250, which is closely aligned with the 23.6% Fibonacci retracement level. If the price breaks the $280 resistance, a positive trend reversal could occur, potentially leading to a steady increase. The next significant resistance levels are located around $300 and $325.
Support Levels and Potential Weaknesses:
However, if BNB fails to surpass the $250 resistance, BNB could continue its downward trajectory. Initial support level on the downside can be found around $220. Violation of this level could result in an extended decline towards the $200 support mark. In case of further losses, the price may drop even lower, towards the $180 and $164 support levels.
Technical Indicators:
The daily Moving Average Convergence Divergence (MACD) indicator for BNB/USD is showing increasing momentum in the bearish zone, reflecting the existing negative sentiment. In addition, a Relative Strength Index (RSI) below 50 indicates weakening buying pressure.
Binance Coin is facing significant resistance as its price continues to decline. Regulatory concerns and the ongoing SEC lawsuit against Binance have added considerable bearish pressure to the market. To gauge potential price movements, traders and investors should closely monitor key support and resistance levels, including $220, $200, $180, $240, $250 and $280.
