The last day did not make any significant changes to the crypto market. Bitcoin continued to hover around the $29,700 mark, and its trading volumes declined again. Most altcoins have shown a slight rebound at 2% to 4% after yesterday’s fall. This can hardly be called an uptrend and indicates the continuing weakness of the market.
In the past 3 weeks, all the world’s media have taken up arms against Binance. Many countries indicated that this exchange is not licensed in their jurisdictions. Let’s take a look at how this affected this exchange’s own coin, Binance Coin:
BNB fell from $690 to $212, or 70% in 10 days. This is a strong drop for the coin, which is in the top-3 in terms of capitalization. A downtrend was clearly formed on the chart from that moment on, and new tops were dropping lower and lower.
At the same time, we have noticed a significant decrease in trading volumes for this coin. At the end of April, the trading volume was almost $10 billion per day, and at the moment, this value has fallen by 85% and is $1,5 billion per day.
An important event took place on Monday. The chart broke through the 200-day moving average line from top to bottom and consolidated below it. In most cases, this led to a new fall in the BNB price when looking at earlier periods. Accordingly, the risk of decline is now increasing.
Since July 7, several new peaks have formed on the chart. Buyers were unable to overcome the $340 level, and the price slid down. During the fall on Monday, the chart dropped to $250. It can be clearly seen that BNB has dropped below $260 several times in the last two months, but buyers very quickly brought the price back. A similar situation has occurred in the last 2 days.
It follows that the price range between $250 and $260 is strong support. If this level does not resist, then the price of BNB will go down to the level of $233 per coin. This is where the uptrend border is located. In the event of a downside breakdown, the coin could very quickly reach the next support at $200.
In the last month, the Binance exchange has been actively developing its NFT platform. This could be a significant driver for BNB’s growth, but it is not happening. First of all, the regulators exert strong pressure on the exchange, this is actively promoted to the public. Therefore, we expect a new decline in the BNB chart.
The current weakness of the market and the lack of liquidity in it may also accelerate the fall. All this creates negative prospects for the coin in the coming month.