Binance Coin (BNB) Defies Regulatory Pressure, Holds $220 Support

Christian Encila

2 years ago

3 mins read

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Binance Coin (BNB), the native token of the Binance ecosystem, has faced significant challenges in the wake of the recent lawsuits filed by the US Securities and Exchange Commission (SEC) against both crypto exchange Binance and Coinbase.

These regulatory actions have had a profound impact on the cryptocurrency market, stifling any potential upward momentum. As a result, Bitcoin (BTC) retested its lowest point in two months, plummeting to $24,000 at the time of the filing.

While BNB also endured the repercussions of the regulatory pressure, it managed to find some stability around the $220 support level.

How will Binance Coin navigate the tough US regulations and maintain its position within the cryptocurrency landscape?

Challenges For BNB’s Upside Potential

In the latest report on BNB price, a Fibonacci retracement tool has been employed based on the price action observed in the second quarter of 2023. This tool reveals two significant obstacles that could impede BNB’s upward trajectory.

The first obstacle lies at the 23.6% Fibonacci level, marked at $250.8, while the second hurdle resides at the 38.2% Fibonacci level, indicated by $269.8. Should BNB encounter a price denial at these resistance levels, it is likely to experience a retracement, possibly revisiting the $220 support level.

BNB market cap currently at $37.9 billion on the daily chart: TradingView.com

Prone To Aggressive Sell-Off Upon Breaching Strong Support

If BNB manages to surpass the mentioned bullish threshold, there is a possibility of it facing a significant downturn in the form of an aggressive sell-off. In this particular scenario, it would be prudent to keep an eye on the immediate lower support levels at $200 and $184.

These levels hold significance as they could potentially serve as crucial points where the price of BNB may find temporary stability or experience further downward pressure.

Source: Coingecko

At CoinGecko, the current price of BNB stands at $243, reflecting a slight decline of 0.9% over the past 24 hours; however, it has experienced a notable seven-day rally of 8.6%.

Meanwhile, since the SEC sued Binance, open interest (OI) rates for BNB have gradually increased. The OI has increased from $316 million on June 5 to the current level of $385 million. The rising number of open contracts for BNB on the futures market indicates an optimistic outlook.

Source: Coinglass

With Binance Coin currently facing significant hurdles at key levels, the outcome of this price analysis raises the question of whether BNB will manage to overcome these obstacles and regain its upward momentum.

Traders and investors will be closely monitoring the price rejection scenario, the strength of support levels, and the buying pressure indicators to assess BNB’s future performance in the crypto market.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Currency.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.