BNB is the exchange token of the Binance crypto exchange that was launched on the Ethereum blockchain but later migrated to the Binance Smart Chain, now called BNB Chain.
BNB has advanced more than 30% since the beginning of January 2023, rising from $243.3 to a high of $337.7. The current price of BNB stands at $314, and for now, bulls continue to control the price movement. But where is the price of BNB going next, and what can we expect from the upcoming weeks?
Today, Crypto Lists will discuss BNB price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you got if trading with leverage.
The US SEC pressure continues
The sentiment on the cryptocurrency market continues to be positive, and in a rare dynamic, the jump in prices across cryptocurrencies this trading week has diverged from the price action of broader US stocks. The cryptocurrency market is usually correlated with the stock market, and if a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.
This trading week, we saw a different practice, and cryptocurrency traders shrug off concerns over more rate hikes from the Fed after hotter-than-expected consumer price index (CPI) and producer price index reports. The price of Bitcoin hit this Thursday, its highest price level since August 2022 (above $25,000), and this situation also positively influenced BNB.
Rally on the cryptocurrency market paused on Friday, with cryptocurrencies weighed down by headlines surrounding Binance, which could cut off its ties with certain US business affiliates.
“Many crypto traders are paying close attention to the report that Binance might exit relationships with US companies as pressure from regulators intensifies. Binance is the world’s largest exchange, and if it abandons key US relationships, that is a major setback for the crypto-verse.”
– Edward Moya, OANDA
Staking in SEC sights
The news about Binance came a day after the Wall Street Journal reported that the exchange was expected to pay fines to settle US regulatory and law enforcement investigations of its business. The US Securities and Exchange Commission intensified its clampdown on crypto staking and continued with efforts to bring crypto operators within the US under the same regulatory framework that governs the sale of all sorts of securities — to treat cryptocurrencies much like stocks and bonds.
In the latest of a string of actions brought by the US SEC, the US Securities and Exchange Commission charged Terraform Labs PTE and Do Hyeong Kwon with allegations of conducting a multi-billion dollar crypto asset securities fraud. Before this, the US SEC charged Kraken with $30 million because Kraken failed to register its staking program, which exposed investors to risks with minimal protection.
Bloomberg also reported this week that the US Securities and Exchange Commission had prepared a draft proposal that could make it hard for hedge funds, private equity firms, and pension funds to work with cryptocurrency-related firms.
Technical analysis for BNB
BNB has advanced more than 30% since the beginning of January 2023, rising from $243.3 to a high of $337.7. The current price of BNB stands at $314, and as long the price of BNB is above $300, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.
Important support & resistance levels for BNB
On this chart (the period from April 2022), I marked important support and resistance levels that can help traders to understand where the price could move. According to technical analysis, bulls continue to control the price movement of BNB, and if the price jumps above $350, the next target could be resistance that stands at $400. The important support level stands at $300, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $280.
If the price drops below $250, which represents another important support level, the next target could be located around $200 or even below.
What speaks for the rise in the BNB price
According to the technical picture, BNB still has room for the upside, especially if the price of Bitcoin continues to perform well. Despite this, investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain while the US SEC pressure continues.
What indicates the downfall of BNB
Wall Street Journal reported this week that the Binance crypto exchange was expecting to pay fines to settle US regulatory and law enforcement investigations of its business. The important support level for BNB stands at $300, and if the price breaks this level, the next target could be $ 280 or even a support level that stands at $250.
What do analysts and experts say
The sentiment on the cryptocurrency market continues to be positive, the price of Bitcoin hit this Thursday levels above $25,000, and this situation is also positive for BNB. According to the technical picture, BNB could advance above the current price level in March 2023, but investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain while the US SEC pressure continues.
Binance is the world’s largest exchange, and if it abandons key US relationships, that is a major setback for the crypto-verse. Markus Thielsen, head of research at Matrixport, said that the SEC enforcement is extremely negative for the crypto industry and could also exclude US crypto users from being part of the innovation.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.