Despite being the largest cryptocurrency exchange in terms of trading volume, Binance continues to face troubles. These ongoing issues are also causing problems for Binance Coin (BNB). BNB has been unable to recover in this crisis situation and it seems that the negative scenarios will continue. BNB has been under significant pressure in recent weeks and is currently 31% below its highest level this year.
BNB Loses Momentum
Many cryptocurrencies experienced significant movements last week following the news about XRP. The favorable preliminary ruling in the Ripple vs. SEC case propelled several cryptocurrencies, including Bitcoin, to new heights. However, BNB failed to break out of its tight range. It was expected that BNB, which is associated with Binance, the target of the SEC lawsuit, would be one of the assets benefiting the most from this news. The fact that this did not happen has raised concerns.
It is still too early to predict the outcome of the SEC and Binance case. In the Ripple case, even the preliminary ruling came more than two years after the initial filing. The recent increase in the volume of withdrawals from the exchange by Binance also caused panic among users.
As of now, the price of BNB is stuck at $244 and has experienced a drop from $265. In the past 24 hours, BNB has lost 2% of its value. If it goes below $240, it could quickly drop to $210.
Looking at the current daily chart, it can be seen that the price of BNB is stuck within a significant range of decline. BNB has formed a bearish flag pattern, which could deepen the decline in the coming days. The bearish flag pattern is typically associated with a downward movement.
Current Status of BNB Price
The price of BNB has fallen below the 50-day and 25-day moving averages. Therefore, the bearish flag pattern could lead to an even worse situation. BNB is expected to drop below $240 in the short term, and in such a case, it could decline to $220 initially. Although Binance is expected to support BNB at certain levels for a while, the increasing pressure from the trading volume may limit Binance’s ability to do so.
