Since June 5th, when the US Securities and Exchange Commission (SEC) initiated a lawsuit against Binance, the market capitalization of BNB (BNB) has decreased by over $7 billion.
BNB price eyes technical bounce
The consequences of the SEC lawsuit for Binance have been considerable thus far, with BNB having dropped approximately 15% since the start of the week.
On June 6, the SEC asked the U.S. District Court for the District of Columbia to put a stop to Binance’s U.S. assets worldwide. If the order is approved, it is likely to compel the exchange to bring back “fiat currency and crypto assets deposited, held, traded, and earned by customers” at its U.S. platform.
Meanwhile, the U.S. branch of Binance has suspended trading for a number of pairs, such as Bitcoin (BTC), Tether (USDT), and Binance USD (BUSD).
Theoretically, these events could potentially arouse people’s enthusiasm for purchasing BNB, since it has been integrated as a utility token in the Binance environment.
Nevertheless, a different outlook may be suggested by technical analysis, at least in the near future. The BNB/USD pair appears ready for a short-term recovery, as it is currently trading near a crucial support level and its daily relative strength index (RSI) has dropped into the “oversold” area below 30.
In June, BNB’s price is expected to ascend to around 7% from its current level, with its descending trendline resistance point near $280 as the next likely target.
On the contrary, BNB’s clear close beneath its long-term rising trendline support implies that $240 should be monitored as a potential downside target in June. This level is roughly 10% beneath current prices, and it is a result of the uptrend wedge breakdown (purple).
Binance’s BNB token to $180 in 2023?
TraderSZ, an independent market analyst, has suggested that due to the current conflict between Binance and the SEC, BNB could potentially drop to its 2022 low of $180.
The continuing decline of BNB price in the form of a descending triangle pattern indicates the same.
Lawyers allege that in 2019, SEC’s Gensler offered to act as a consultant to Binance.
Descending triangles are generally seen as bearish continuation formations in a downward trend. Usually, the pattern is finalized when the price falls beneath the lower support line, with a decrease of up to the triangle’s maximum altitude.
BNB has the potential to decrease to approximately $180 in 2023, which is a decline of approximately 30% from its current value.
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