Summary: Binance Coin (BNB) has seen a decline in price, reaching lows of $204 after breaking below key support levels at $210 and $208. The downward pressure on BNB comes as Binance faces regulatory hurdles and issues with payment partners. If bulls fail to hold the $200 zone, BNB could drop even further to lows of $180. BNB has fallen more than 14% in the past week.
BNB price has broken below a crucial support level as regulatory challenges and recent problems with payment partners contribute to the overall downward pressure on Binance’s native coin. BNB traded at a low of $204 on Tuesday, indicating a 2% decline in the past 24 hours. This decline follows a 14% drop over the past week. The current price levels place BNB below a significant technical support line, with the potential for further weakness if bears push for the critical $200 area. This level was last broken in June 2022 after the collapse of Terra and Three Arrows Capital.
Why is BNB price down today?
Binance has faced multiple regulatory hurdles in recent months, including a lawsuit by the US Securities and Exchange Commission (SEC) in June. The SEC’s lawsuit caused BNB price to plummet from $306 to $230. The cryptocurrency has struggled since then, and the downward pressure has been further intensified by reports of halted euro deposits and withdrawals. Binance’s payments partner, Paysafe, announced in June that it would no longer support the company. Additionally, digital payments platform Checkout.com ended its relationship with Binance.
Binance Coin price outlook
The combination of Binance-related issues and the broader weakness in the risk asset markets suggests that BNB price could experience a dip to its lowest level in over a year. This scenario is supported by the technical outlook for BNB/USD on the weekly chart. On the 4-hour chart, bearish indicators such as the RSI, MACD, exponential moving average, and funding rate suggest downward strength for BNB price.
In terms of price action, the path of least resistance for BNB appears to be downward, with the key level to watch being $200. A break below this level could lead to further declines towards the $180 area. However, if BNB manages to push prices higher, reclaiming $210 will be crucial in attracting bulls back to the $220-$250 region.
What is Binance Coin (BNB)?
Binance Coin (BNB) is the native cryptocurrency of the Binance exchange, one of the largest cryptocurrency exchanges in the world. BNB is used for various purposes within the Binance ecosystem, including trading fee discounts, participation in token sales, and more.
What are the regulatory challenges faced by Binance?
Binance has faced regulatory challenges from various authorities around the world. The US Securities and Exchange Commission (SEC) filed a lawsuit against Binance in June, alleging that the exchange operated an unregistered securities exchange. Binance has also faced scrutiny from regulators in the UK, Japan, and other countries.
What are the implications of BNB’s price decline?
The decline in BNB’s price could indicate a loss of investor confidence in the Binance platform and its native coin. It may also reflect concerns about the regulatory challenges and issues with payment partners that Binance is currently facing. Investors should carefully consider these factors before making any decisions regarding BNB.
Is it a good time to buy BNB?
The decision to buy BNB should be based on individual investment goals and a thorough analysis of market conditions. It is important to consider the potential risks associated with Binance’s regulatory challenges and the broader cryptocurrency market. Consulting with a financial advisor or conducting extensive research can provide valuable insights when making investment decisions.
Where can I trade BNB?
BNB can be traded on various cryptocurrency exchanges, including Binance, where it is listed. Traders can also access BNB on other popular exchanges like Coinbase, Kraken, and Huobi.