BNB has weakened nearly 20% since May 29, 2023, falling from $317.1 to a low of $253.9. The current price of BNB stands at $260, and for now, bears continue to control the price movement.
The major reason behind the current dip is the fact that Binance and its founder “CZ” have been sued by the SEC this week for operating an unregistered securities exchange.
But where is the price of BNB going next, and what can we expect from the upcoming weeks? Today, Stanko from Crypto Lists reviews 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 have if trading with leverage.
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- 1 The US SEC pressure continues
- 2 More than $750 billion withdrawn from Binance
- 3 Whales diverting funds
- 4 Technical analysis for BNB
- 5 Important support & resistance levels for BNB
- 6 What speaks for the rise in the BNB price
- 7 What indicates the downfall of BNB
- 8 What do analysts and experts say
- 9 U.S to fall behind?
The US SEC pressure continues
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 many other purposes within the Binance ecosystem and has been integrated into various applications and services.
The largest crypto exchange in the world was sued by the Securities and Exchange Commission (SEC) for allegedly breaching multiple securities laws this Tuesday. Both Binance and its founder/CEO Changpeng Zhao have been hit with 13 separate charges and have been accused of operating an unregistered securities exchange and “enriching themselves while placing investors’ assets at risk.”
Besides this, Binance has been investigated several times by the U.S. Securities and Exchange Commission this year, with C.Z. being hit with a $1 billion lawsuit two months ago for supposedly paying celebrities to endorse unregistered securities.
The U.S. Securities and Exchange Commission (SEC) has taken an increasingly aggressive stance towards the crypto sector, and it continues with efforts to bring crypto operators within the U.S. under the same regulatory framework that governs the sale of all sorts of securities — to treat cryptocurrencies much like stocks and bonds.
More than $750 billion withdrawn from Binance
It is still uncertain what will come of the lawsuit, but the latest negative news scared investors and caused a massive sell-off where BNB dropped by almost 10% in one single day while the crypto’s total market cap lost roughly $50 billion in the same period.
More than $750 billion has been withdrawn from Binance in the hours following the announcement, but CEO Changpeng Zhao said that the system remains stable. The market is still digesting the news; more volatility can be expected, which makes it difficult to predict accurately what a coin’s price will be in a few hours and even harder to come up with a near-term target price.
It is also important to mention that there has been a significant drop off in the number of whale transactions, and when whales reduce their trading activity (transactions worth $100,000 and above), it usually indicates that they are losing confidence in the underlying coin’s short-term price prospects.
Whales diverting funds
If the whales continue to reallocate funds to other investments, the price of BNB could take an even bigger hit in the upcoming weeks.
Usually, during volatile events like crashes, there are a large number of investors who panic and sell off their coins, and according to many analysts, BNB might have a hard time holding above the current price levels.
At the same time, regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from U.S. politicians will continue to have a major influence on the financial markets in the weeks ahead. There are currently too much important things that could easily go wrong, and a recommendation is that investors should continue to take a defensive investment approach.
Technical analysis for BNB
BNB has weakened from $305.2 to $253.9 since June 05, 2023, and the current price stands at $260. BNB might have a hard time holding above the $250 level in the upcoming days, and a break below this level would indicate that BNB could probably test the price level at $230.
Important support & resistance levels for BNB
What speaks for the rise in the BNB price
The upside potential for BNB probably remains limited for the weeks ahead; still, if the price advances above $280, the next target could be resistance at $300. 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
The price of BNB is currently trading above $260, but a break below the $250 level would indicate that BNB could probably test the price level at $230. The highly volatile nature of the cryptocurrencies may scare investors to sell BNB if some negative news happens that is connected with Binance and the Securities and Exchange Commission (SEC).
Binance and its founder “CZ” has been sued by the SEC this week for operating an unregistered securities exchange, and it is still uncertain what will come of the lawsuit.
What do analysts and experts say
The U.S. Securities and Exchange Commission sued Binance and CEO Changpeng Zhao this week, alleging the exchange engaged in multiple unregistered offerings; combined functions of brokers, dealers, and clearing agencies; and according to SEC, the largest crypto exchange in the world also didn’t keep Binance.US as separate from Binance as it claimed.
More than $750 billion has been withdrawn from Binance in the hours following the announcement that caused a massive sell-off where BNB dropped by almost 10% in one single day. However, CEO Changpeng Zhao said that the system remains stable, assets remain safe and secure with Binance.US, and deposits and withdrawals continue to function as normal.
U.S to fall behind?
The cryptocurrency market also remains under pressure, the price of Bitcoin hit this Tuesday levels below $26,000, and according to analysts, BNB might have a hard time holding above the current price levels. Binance is the world’s largest exchange, and every negative news that is connected with Binance is a major setback for the cryptosphere.
Markus Thielsen, head of research at Matrixport, said that the SEC enforcement is extremely negative for the crypto industry and could also exclude U.S. crypto users from being part of the innovation. However, here at Crypto Lists we believe this is a small obstacle, and that the US will have to act once the EU enacts MiCA next year in order to remain competitive.
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.