Binance Coin price analysis: Will the $200 level break down?
Binance Coin could recover in the short term ncespite fraud and crime allegations
Binance Coin is attempting a recovery on 14 June 2022 after Binance announced that it has resumed the withdrawal of Bitcoin, which was temporarily paused on the previous day.
Other than the negative sentiment affecting the cryptocurrency sector, Binance has been bogged down by speculation that the US Securities and Exchange Commission (SEC) could investigate the exchange for possible violations of securities regulations.
Binance’s founder and CEO, Changpeng Zhao, speaking at CoinDesk's Consensus 2022, said the SEC was in constant touch with the exchange but it had not yet been subpoenaed.
Separately, a Reuters report said that Binance has become a "hub for hackers, fraudsters and drug traffickers" with links to the dark web market and “has served as a conduit for the laundering of at least $2.35bn in illicit funds” for five years.
Binance has vehemently denied the allegations made by Reuters. Tigran Gambaryan, global head of intelligence at Binance said: "It's something that completely disregards facts to get an agenda across. The biggest part of this story is completely ignored. You can't control deposits, you can only control what you can do afterwards," Coindesk reported.
BNB Chain, the entity formed by the merger between Binance Chain and Binance Smart Chain, announced major upgrades at the BNB Chain Revelation Summit, with the aim to make the network faster and more decentralised before the end of this year.
Will long-term investors accumulate after the recent decline? Could binance coin go up? Read the BNB price analysis to find out.
Binance Coin price technical analysis: weekly chart
The failure of the buyers to push BNB’s price above the $323 to $335 resistance zone may have attracted aggressive selling by the bears. That started a downward move which has reached the psychological support of $200.
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The downsloping 20-week exponential moving average (EMA) and the relative strength index (RSI) in negative territory suggest that bears are in command. If sellers sink the price below $200, the next leg of the downtrend could begin. The BNB/USD pair could then decline to $150.
However, the bulls are unlikely to give up the $200 level without a fight. They will attempt to push the price back toward the overhead zone between $323 and $335. A break and close above the 20-week EMA could suggest that the downtrend may be over.
Binance Coin price technical analysis: daily chart
BNB’s price turned down from the 20-day EMA on 10 June and the selling picked up momentum from 11 June. The bears pulled the price below the 12 May intraday low of $209 but the long tail on the 14 June candlestick shows that the bulls are attempting to defend the psychological level of $200. The deeply oversold levels on the RSI also indicate that a relief rally is likely.
Recovery attempts could face aggressive selling at the 20-day EMA. If the price turns down from this resistance, it will suggest that the trend remains negative and traders are selling on rallies. The bears will then again attempt to sink the price below $200. If they manage to do that, the pair could start the next leg of the downtrend.
This negative view could invalidate in the short term if buyers push and sustain the price above the 20-day EMA. If that happens, the pair could rally to the 50-day simple moving average (SMA).
Binance Coin: buy or sell this week?
The bulls are attempting to arrest the fall at the crucial level of $200 but the bulls are unlikely to have it easy. The bears will again pose a strong challenge at the 20-day EMA. If bulls clear this overhead hurdle, the rally could extend to the 50-day SMA. Conversely, if the price dips below $200, binance coin’s price analysis suggests that the pair could plunge to $150.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.