Binance Coin (BNB) is striving to maintain its short-term bullish trend despite the ongoing legal dispute between Binance and the U.S. Securities and Exchange Commission (SEC). However, a potential 30% price drop is not off the table. Since June 5, when the SEC initiated a lawsuit against Binance, BNB’s market capitalization has plummeted by over $7 billion. Let’s take a look at this BNB price article.
SEC Lawsuit’s Impact on BNB Price
The SEC’s legal action against Binance has had a significant impact, with BNB’s value decreasing by nearly 15% within a week. On June 6, the SEC petitioned to freeze Binance’s U.S. assets globally. If approved, this order could compel the exchange to return all “fiat currency and crypto assets deposited, held, traded, and accrued by customers” on its U.S. platform.
In response to the lawsuit, Binance’s U.S. branch suspended trading for several pairs, including Bitcoin (BTC), Tether (USDT), and Binance USD (BUSD).
The Effect on BNB Buying Sentiment
BNB/USD 1-Week chart – TradingView
These developments could potentially affect the buying sentiment for BNB, considering its role as a utility token within the Binance ecosystem. However, technical indicators suggest a different short-term scenario. The BNB/USD pair appears poised for a short-term bounce as it trades around a crucial support level and its daily relative strength index (RSI) has dipped into the “oversold” region below 30. At the time of writing this the BNB price is sitting at $238.60.
BNB’s Potential Price Movements
BNB/USD 1-Day chart – TradingView
If this scenario plays out, BNB’s price could target its descending trendline resistance point near $280 in June, a roughly 7% increase from current levels. Conversely, a decisive close below its multi-month ascending trendline support suggests that $240 could be a potential downside target in June, a decrease of approximately 10% from current levels.
BNB’s Future Outlook
We predict that the ongoing legal battle between Binance and the SEC could push BNB’s value down to its 2022 low of $180 or even more. Intriguingly, the present deterioration of a descending triangle pattern in BNB’s price trajectory hints at a similar result. Descending triangles are commonly interpreted as bearish continuation signals within an overall downward trend. They typically culminate when the price breaches their lower trendline support, leading to a price fall that could be as steep as their greatest height.
As a result, BNB could potentially drop to around $150 or even more in 2023, a decrease of approximately 30% from current levels. However, it’s important to note that these are predictions and not investment advice. Every investment and trading move carries risk, and individuals should conduct their own research before making a decision.
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