The prices of Binance Coin (BNB), the native currency of the Binance ecosystem, is under immense pressure just like how the broader cryptocurrency market is, slipping at 18% from July highs. However, in the case of BNB, it is now trading at new 2023 lows following steep losses last week.
At around $216 when writing on Aug. 21, the path of least resistance is southwards, and there appears to be no reprieve even for the most optimistic buyers.
As it is, traders can look for entries to short as long as the Aug. 17 trade range defines the present price action.
In the days ahead, how prices react at around $212 will shape the short-term trend.
Binance Woes
BNB is the Binance ecosystem’s primary coin comprising the BNB Chain, the smart contract platform, and the exchange, Binance, the world’s largest.
The crackdown by the United States Securities and Exchange Commission (SEC) on the exchange has had a significant impact. Already, the SEC alleges that BNB is a security according to their lawsuit against Binance in June.
At the same time, they assert that Binance enabled the trading of several unregistered securities, listing examples such as AXS and ALGO. Following these claims, Binance has faced more regulatory scrutiny from several countries, including Netherlands, Canada, and Nigeria.
However, the exchange is expanding in Japan and South East Asia, where they seek to establish a presence. Meanwhile, El Salvador also recently approved Binance, a reprieve for Changpeng Zhao-led exchange.
BNB Price Analysis
BNB price is below the key support level at around $230 and is now at around June to July 2023 trade range. From the daily chart, the path of least resistance, as mentioned earlier, is southwards.
Since the breakout of Aug. 17 had high trading volumes, traders can look for entries to unload the coin. This is especially true as long as prices are within the Aug. 17 trade range and below $230.
Though there are hints of undervaluation, and prices might recover towards the $220 to $230 zone—if the momentum is high, any drop below $212 might trigger more losses to June 2022 lows at $185. Conservative traders can wait for trend definition above $212 or $230 before bucking the emerging trend.
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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