BNB Price Faces Challenges
BNB’s price is currently displaying several negative indicators as it remains below the $220 mark. On the weekly chart, a significant bearish trend line is taking shape, with resistance around $275. If the price manages to close below $200 by the end of the week, it may experience a substantial decline.
BNB is facing challenges in initiating a rebound above $220. If the price slips below the $200 mark, it could spell trouble for the bullish momentum.
Regulatory Concerns and Selling Pressure
Over the past few weeks, the price of BNB has experienced a consistent decline, falling from a position well above $300. Persistent bearish pressure pushed the price into negative territory below $280.
Despite recent rebounds in Bitcoin and Ethereum, BNB struggled to initiate an upward correction. It appears that regulatory concerns surrounding Binance continue to impact its performance. Notably, Sam Bankman-Fried, the founder of FTX, accused Binance of disclosing FTX’s balance sheet.
- He alleged, “Binance leaked our balance sheet, published it on their blog, provided it to Coindesk, and publicly announced the sale of $500 million worth of FTT in response. Simultaneously, they cautioned customers to be cautious when dealing with FTX.”
There’s growing selling pressure on BNB, and it could lead to a significant drop in price. Currently, the price is well below the $250 support level and the 50-week simple moving average (blue line). It’s also trading below the 76.4% Fib retracement level, calculated from the last major rise starting at the $183 low and reaching the $397 high.
The BNB price is now approaching a critical support level at $200. If it fails to hold above this level, the next significant support is around $182. If it falls below this point, the price could drop further.
In the worst-case scenario, it might test the 1.236 Fib extension level of the previous significant rise, stretching from the $183 low to the $397 high, which is at $132. Further losses could open the door for a potential drop to the $50 support area.
Potential Upside?
BNB is encountering hurdles around the $220 area, with the next significant resistance near $235. The primary resistance level stands at $275, coupled with the 50-week simple moving average (blue line).
A notable bearish trend line is shaping up with resistance around $275 on the weekly chart. A decisive breakthrough above $275 and $280 resistances could initiate a new upward trend. In such a scenario, BNB might target the $350 level, and further gains could propel it towards the $400 resistance.
Conclusion
In summary, BNB is grappling to maintain its position above the key support at $200. A weekly close below $200 and $182 could lead to substantial downside. Conversely, a potential recovery might see the price reclaim $235.
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