The market capitalization of BNB has dropped by more than $7 billion since June 5 when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance. With BNB down nearly 15% week-to-date, market watchers are questioning how low the token’s price could go.
The SEC’s move has had a significant impact on Binance so far, requesting the Washington D.C. district court to freeze Binance’s U.S. assets worldwide on June 6. Moreover, Binance’s United States’ entity halted trading for several pairs, including Bitcoin, Tether, and Binance USD.
Considering the critical role of BNB as a utility token in the Binance ecosystem, people’s buying sentiment might be stirred. However, technical analysis suggests a short-term bounce as the BNB/USD pair trades around a crucial support level and its daily relative strength index (RSI) enters the “oversold” region. This scenario could see BNB price targeting $280 in the short term, about 7% above current levels.
Nonetheless, BNB’s decisive close below its multi-month ascending trendline support also indicates a downside target of $240, around 10% below current price levels. Independent market analyst TraderSZ believes BNB could drop to the 2022 low of $180 due to the ongoing Binance-SEC battle. Furthermore, the ongoing breakdown of a descending triangle pattern for BNB price supports this prediction. Descending triangles are typically viewed as bearish continuation patterns in a general downtrend, resolving when the price breaks below their lower trendline support.
Given these circumstances, BNB’s price could fall to around $180 in 2023, down approximately 30% from current price levels. While technical indicators and factors surrounding the Binance-SEC lawsuit may have an impact on BNB’s price, traders and investors should conduct their own research and consider the associated risks before making decisions on the token’s future.
Source: Cointelegraph
