The prices of BNB stay firm when writing, up 11% from last week’s low but remain within a bearish formation, candlestick arrangement on June 19 shows.
Even though there has been a welcomed recovery, the path of least resistance is southwards. Traders may look to short the coin if prices fail to pierce above immediate liquidation levels.
As it is, BNB has a temporary ceiling at around $260 as prices oscillate within the bear bar of June 10. Meanwhile, primary support is $220, marking last week’s lows.
Binance Increasing Regulatory Scrutiny
The coin remains under pressure primarily because of Binance. Per recent developments, the world’s largest cryptocurrency exchange, Binance, is under increasing regulatory scrutiny.
In the United States, the Securities and Exchange Commission (SEC) is accusing the ramp of operating an unregistered trading platform and flouting the country’s trading rules.
At the same time, the regulator claims Binance supported the trading of unregistered “securities”, including Cardano (ADA), Algorand (ALGO), and others.
Even so, Binance’s lawyers have responded to the lawsuit. As it is, it is expected that the case will be protracted but will help create clear rules on how operators can compliantly run crypto exchanges and list utilities.
Messari reports that BNB, like Ethereum, is deflationary despite this development. The smart contracts platform is one of the most active decentralized finance (DeFi) portals, powering various solutions, including exchanges and others.
BNB Price Analysis
From the daily chart, the path of least resistance is southwards.
The coin is down 30% from April highs and that sets the BNB within a bear breakout formation after slipping below $270 and March 2023 lows. At spot rates, the coin is trading at around 2023 lows.
Technically, bears are in control, and every attempt higher below $220, or June 10 high, presents an opportunity to unload.
This preview is valid from volume analysis since the recent leg up towards $260 is with relatively low trading volumes. Therefore, unless there is a sharp drive above $260, every high may offer entries for sellers targeting $220 or June low.
Any drop below this line may trigger more sell-offs toward $220 or lower.
Conversely, a sharp breakout with expanding volumes above $260 may see BNB retest $270 and even recover in the days ahead.
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.
If you found this article interesting, here you can find more BNB News.
