Key Points:
- The lawsuits between the SEC and Binance have put significant pressure on BNB’s price performance.
- Its $220 support is now consolidating.
- According to the long-term trend, BNB is still not a good option as there are uncertain external factors.
Binance Coin (BNB), the Binance ecosystem’s native currency, has encountered considerable problems in the aftermath of recent lawsuits brought by the US Securities and Exchange Commission (SEC) against both Binance and Coinbase. Although BNB was also subjected to regulatory pressure, it was able to establish some stability around the $220 support level.
On June 10, the Binance Coin price decisively broke through the support trendline of a triangular formation that had been trending horizontally for about a year. This collapse must have freed the contained bearish momentum, setting the BNB price on a long-term decline. Each swing low established during the triangle formation might, in principle, serve as a key target for traders.
The $220 level represents multi-month support, which might prolong the probable decline and temporarily flip the BNB price sideways.
Currently, BNB is trading at $243, which doesn’t say much, while the important price points are the recently broken $262 confluence and the nearest psychological resistance, $250 (this is also the price of the 23.6 Fib).
Regarding a deeper bearish scenario, it probably won’t happen in the near term, as if the $220 price zone is breached, then $200 would be a very strong support area, if not the last line of defense for the coin.
In terms of the current market overview, Bitcoin is nearing $27,000, bringing positive sentiment to the market, but the point is that currently, the money is pouring into BTC and not altcoins, so Binance Coin, too, is. There will be little momentum to break above the Fib 50 mark of $287.
Currently, in our assessment, BNB is still not a potential for short-term speculators, if not the potential risks when legal issues between the SEC and Binance is still going.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
Coincu News
Source: https://news.coincu.com/196398-bnb-gains-10-in-value-from-the-220/