Binance Gold coin (BNB) price came by nearly 7.3% on June 7 to below $275, its cheapest level in three days.
In addition, BNB cost could visit another 25%–40% in 2022 since it’s parent firm, Binance, faces allegations of breaking securities rules and washing vast amounts of dollars in illicit funds for crooks.
Not so good news two times consecutively
BNB was issued as part of a preliminary gold coin offering (ICO) in 2017 that accumulated $15 million for Binance.
The token mainly works as a utility asset inside the Binance ecosystem, mainly enabling traders to earn discounts on their own buying and selling activities. Concurrently, BNB also functions like a speculative financial asset, which makes it the 5th-largest cryptocurrency by market capital.
Consequently, the U.S. Registration (SEC) is investigating if the ICO of BNB tokens in 2017 would be a purchase of securities which should happen to be registered using the regulator, according to sources contacted by Bloomberg.
So, will all exchanges including binance delist $BNB like they did with $XRP?
— Crypto Mark ❄️ (@MarkCrypto8) June 6, 2022
This risks putting downward pressure on BNB’s cost, that has lost over fifty percent of their value after peaking in May 2021 around $700.
BNB holds above May–July 2021 support
Additionally towards the not so good news, BNB’s plunge also came as part of a wider correction trend elsewhere within the crypto market, with top coins Bitcoin (BTC) and Ether (ETH) dipping by 7% and seven.25% on the day that.
$BNB strongly shorted due to the FUD. pic.twitter.com/BzvGtPcK3d
— Byzantine General (@ByzGeneral) June 6, 2022
Now, BNB tests the 61.8 Fib retracement level (near $274) from the Fibonacci retracement graph sketched from the $10-swing low to $700-swing high. Interestingly, exactly the same level was instrumental as support throughout the May–July 2021 session that preceded a 170% cost rally.
But weak fundamentals, such as the Federal Reserve’s hawkish policy, have elevated BNB’s chance of shedding underneath the 61.8 Fib line.
Related: The crypto market dropped in May, but June includes a silver lining
Should this happen, then BNB’s next downside target might be its 200-week exponential moving average (200-week EMA nowhere wave) near $200, lower about 25% from June 7’s cost.
The BNB/USD pair’s weekly relative strength index (RSI), now at 34, also shows more room to decrease before the studying hits 30, an oversold level that signifies buying sentiment.
Meanwhile, an additional drop underneath the 200-week EMA might have BNB eye the .786 Fib line near $160 since it’s support, lower by 40% from June 7’s cost.
On the other hand, if BNB seems to hold strong above $274, it might rebound toward the region based on its .5 Fib line around $355 and it is 50-week EMA (the red wave) near $380, up over 20% in the current cost level.
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