The prices of BNB, the native currency of the Binance ecosystem, are down at spot rates, shrinking 8% from last week’s highs, and remains capped below $260. Technically, the coin is weak at spot rates and remains within a bearish formation.
Despite the general optimism from the end of last week, bulls can’t build on the improving sentiment and drive the coin above immediate liquidation levels. From the daily chart, the $260 line is critical and may shape the short-term trend.
Conversely, losses below $230 may heap more pressure on BNB in the days ahead. Since prices are mostly consolidating, risk-on traders can wait for a clear trend definition before loading the dips or unloading on higher highs.
Binance Prepares To Take On the SEC
Binance remains the largest cryptocurrency by trading volumes and trader count. Even though the increased regulatory scrutiny may impact activity and prevent some users from using the exchange, the platform plays a critical role in the industry.
Presently, Binance has been sued by the United States Securities and Exchange Commission (SEC) for allegedly offering a platform where traders can swap unregistered securities. While Binance prepares to defend itself against the aggressive regulator, there have been changes to the legal team.
This is amid reported mass layoffs in the recent past that have seen hundreds of employees depart. Eleanor Hughes is now the general counsel and will lead a team of 85 lawyers. The eventual outcome of the case will determine BNB’s valuation.
BNB Price Analysis
From the daily chart, BNB is under pressure, sliding lower from last week’s highs. Down 8%, bears are in control, and there could be more pain for holders if BNB losses key support levels.
BNB is consolidating, and the zone between $260 and $230 is crucial. Since the primary trend is southwards and following the strong rejection on July 14, aggressive traders might look to short, targeting $230.
Notably, the July 14 bar had high trading volumes, reversing the gains of July 13. As such, there could be more losses in the short-term provided prices are below $260 and in consolidation.
Any breakout—above $260 or $230—may offer entries for conservative traders, especially if it is with expanding volumes. Any drop below $230 will see BNB crash towards $200 in a bear trend continuation formation.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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