With the SEC taking legal action against Binance, the question on everyone’s mind is: Is BNB heading down the same path as FTX?
The first sign of trouble for BNB emerged when the SEC initiated legal proceedings against Binance. Since then, BNB, valued at $300, has experienced a significant downturn, with its price plummeting to approximately $100. This drastic drop in value has left many investors questioning the cryptocurrency’s stability and future prospects.
On the monthly price chart, the downturn in BNB price began in December 2021, marking the start of a prolonged bearish trend. Almost every candlestick on the chart during this period (on a monthly basis) has been painted red, signifying consistent downward pressure.
Will BNB Continue to Struggle?
Even when a rare green candlestick appears, it struggles to maintain its momentum, succumbing to the relentless selling pressure. It’s worth noting that these fleeting upward movements may be attributed to occasional positive news within the cryptocurrency market.
When considering the technical indicators, it becomes evident that BNB is grappling with significant challenges. The price of BNB Coin is currently trading well below the Simple Moving Average (SMA) indicator, indicating a bearish sentiment in the market.
Although there have been occasional pullbacks, they have proven to be short-lived and unable to sustain any significant upward momentum. The Moving Average Convergence Divergence (MACD) further highlights the bearish sentiment with a continuous series of red candles. Both the fast and slow signal lines are rapidly descending, painting a bleak outlook for BNB.
If the current trend persists, it is highly likely that the MACD will soon start displaying negative signals in the coming one or two months. This would reinforce the notion that the BNB future may be fraught with further price declines and uncertainty.
Currently, BNB is trading at $211, while the previous support price was $210. If this momentum continues and the price goes below $210, then it will easily reach $180 or $170. But if the price remains at this level, then we will see some jumps in prices because 2024 is coming and people will enter the market with some new expectations.
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