A legal battle has begun between Binance and the SEC. Now everyone is wondering what the move will be for the BNB price. However, there is an emphasis that a 30% decrease is in the cards.
Will BNB price drop?
The BNB price was shocked by the SEC’s lawsuit against Binance. Since June 5, its market cap has dropped by more than $7 billion. The impact of the SEC lawsuit on Binance has been significant so far. The BNB price is down about 15% on a weekly basis. On June 6, the SEC requested something from the U.S. District Court for the District of Columbia. Accordingly, he demanded that Binance freeze its US assets worldwide. If the decision is accepted, a difficult situation will arise for customers on the US platform of the exchange. There will be repatriation of assets deposited by customers. On the other hand, the movement of so many funds will of course affect the crypto money market. First of all, the BNB price.
In the meantime, Binance’s establishment in the USA took the step, as we mentioned as Kriptokoin.com. It has stopped trading for various currencies, including Bitcoin. In theory, these events risk confusing people’s buying sentiment for BNB, as it is included in the Binance ecosystem as a utility token. However, the technical data paints a potentially different picture, at least in the short term. BNB price is trading around a critical support level. Also, the daily relative strength index (RSI) has entered the “oversold” zone below 30. So it looks like it’s ready for a short-term leap.
descending trend line
In this case, BNB price will see the descending trendline resistance around $280, up about 7% from current price levels in June, as its next upside target. On the other hand, BNB’s steady close below multi-month rising trendline support means $240 should be viewed as a potential downside target in June. This is about 10% below current price levels. This appears to be outside the rising wedge break scenario (purple).
Independent market analyst TraderSZ has an interesting approach. He believes that due to the ongoing Binance-SEC war, BNB will drop towards the 2022 low of $180. Interestingly, the continued breakdown of the descending triangle pattern for BNB price indicates the same. Accordingly, descending triangles are typically seen as bearish continuation patterns in an overall downtrend. Typically, they are resolved when the price breaks below the lower trendline support and the price drops by its maximum high. As a result, BNB price risks falling towards its triangle target of around $180 in 2023. Accordingly, this means a decrease of approximately 30% from current price levels. Now, everyone intends to take part in the market with this risk. However, it is not easy to take steps when there is such uncertainty. Let’s see how the next process will reveal a picture for BNB. We’ll wait and see.
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