Binance Coin (BNB) price has been moving within a formidable supplier congestion zone for months now. The tug of war between bulls and bears interrupted every recovery attempt, keeping the price trapped within this bracket.
On the upside, BNB price was facing major resistance at the $338.8 supplier congestion zone. Downward, major support was at $260. At the time of writing, Binance Coin was exchanging hands for $301 after losing 3.26% in the last 24 hours. Similarly, the token’s market cap had also plummeted by 3.26% to $47.4 billion.
Over the past 24 hours, trading activity for the Binance Coin had also dropped by 10.44% to $414.99 million as investors shied off trading in light of recent news concerning the Binance platform.
BNB is the native token of the Binance exchange, featuring among CoinMarketCap’s top 10 by market cap. The token is extremely popular within the crypto playing field and is listed on leading crypto platforms like Binance, Coinbase, Huobi, and Global.
POV: You’re an extremely efficient blockchain with millions of active users and a thriving ecosystem 👀 pic.twitter.com/euOW1qDFQV
— BNB Chain (@BNBCHAIN) February 25, 2023
The token is a trader favorite for many reasons, including its trading fee discounts. It also serves as the primary medium of exchange for crypto exchange Binance, providing utility within the Binance ecosystem. BNB also facilitates a wide range of cryptocurrency-based operations like network governance and paying for gas fees on the Binance DEX platform.
Binance Coin Suffering The Aftermath Of Regulator Accusation
The world’s largest cryptocurrency exchange platform, Binance, acquired crypto lending firm Voyager in a $1.02 billion deal. However, based on a February 22 court filing, New York and Federal financial regulators challenged the purchase.
SEC objects to Binance. US’ $1B Voyager deal, alleging sale of unregistered securities
— unfolded. (@cryptounfolded) February 23, 2023
On its part, the United States Securities and Exchange Commission (SEC) called into question the ability of Binance exchange to reimburse the lender’s creditors. This comes as Binance was preparing to pay penalties for corruption and money laundering infringements. According to the SEC, the deal could become “unfeasible” and “impossible to consummate.”
SEC cited media reports that Binance is bracing itself to pay penalties for past infractions of money laundering and corruption law as evidence that the deal could become “unfeasible” and “impossible to consummate.”
— Wu Blockchain (@WuBlockchain) February 23, 2023
In response to the SEC, Voyager called the regulators’ objections “hypocritical,” saying the Binance deal is the best opportunity for creditors to recover their lost funds.
Nevertheless, the SEC’s comment seems to have negatively influenced the sentiment of market participants holding Binance’s native token BNB. The token is currently trading horizontally after a short-term uptrend that commenced in mid-December.
Will BNB Escape The Supplier Congestion Zone?
BNB was trading at $301 at press time, moving horizontally as the price was trapped within two boundaries. The token battled immediate resistance from the 50-day Simple Moving Average (SMA) at $305. If bulls can flip this obstacle into support, they could use it to fight off the next roadblock at $320. An increase in buying pressure past this level could set the BNB price on course to face the major resistance level.
BNB/USD Daily Chart
A daily candlestick close above the resistance at $320 would increase the chances for the price to escape this supplier congestion zone to the uoside. Once out, the possibility of BNB soaring 18% to hit the $400 level in value would increase. This level was last tested in May, just before the collapse of the Terra ecosystem swept the crypto market’s value to unprecedented lows.
The price was also sitting on solid support due to the 200-day and 100-day SMAs at $287.9 and $286.9 levels, respectively. All the SMAs were within the said supplier congestion zone, which provided BNB bulls with more leeway to soar as they provided robust support areas on the downside. Notice there was a pending bullish cross that would be authenticated once the slower-moving 100-day SMA crossed above the faster-moving 200-day SMA.
On the downside, if investors continued collecting profit, the ongoing sell-off could continue, and BNB price would maintain the downtrend and lose the support offered by the SMAs.
Beyond the moving averages, the BNB price could move lower to the $240 level or revisit the $220 swing low in the worst possible outcome. Below this level, the Binance coin would lose its value below $200.
The relative strength index (RSI) and the moving average convergence divergence (MACD) indicators were moving downwards, showing that the path with the least resistance was south. The histograms were also in red to show bears had the upper hand. The price strength of the RSI at 44 also showed that the BNB price was under the control of bears.
Investors looking to diversify their portfolio beyond BNB should consider CCHG, the native token of the C+Charge ecosystem. CCHG is still in the presale stage, having garnered upwards of $1.46 thus far. Analysts are also very bullish about the performance of CCHG in 2023.
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— C+Charge (@C_Charge_Token) February 23, 2023
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