Binance Coin price action alerts traders that a slide below $300 is forthcoming
|- Binance Coin price value at risk of being cut by 10%.
- BNB could see a negative spillover from Binance LLC soon being investigated.
- After the Reuters report on possible Binance breach of US financial regulations, the company has been trying to put up a smoke screen.
Binance Coin (BNB) price is feeling some negative pressure from the Reuters report that came out earlier this week. It revealed that Binance Exchange has been breaching US financial rules by mixing up company money with client deposits. While the news has settled, Binance LLC is creating negative pressure for itself as it refuses to respond to the allegations and instead tries to prop up the price action for BNB by issuing posts that refer to a bullish breakout soon for altcoins and crypto coins. Building a smoke screen is not the best idea here, and price action confirms this. Traders are sending Binance Coin lower and might say goodbye to $300 in the coming sessions.
Binance Coin price needs its parent company to come clean
Binance Coin traders do not accept the attempts of parent company Binance LLC to circumvent the Reuters report about commingling customer and corporate funds. While Binance is tweeting about the next possible bull run in crypto after China’s state television aired a program on crypto, it should rather tweet about the Reuters report and how it will deal with it. A clean and simple statement that Binance LLC and all its subsidiaries will cooperate with any investigation would send BNB flying higher.
Meanwhile, BNB is being punished by traders and has drifted a leg lower this Thursday. Expect to see pressure build at $300 due to its psychological nature, the 200-day Simple Moving Average (SMA) and the low of May all falling in line near that level. Once broken, expect a nosedive move of around 10% that would have BNB trading at $283 – a pivotal level from back in March.
BNB/USD 4H-chart
That $300 level could hold as mentioned in the above paragraph since plenty of support elements are present for a turnaround. Do not expect a big jump higher but a gradual recovery toward $320. That means that the red descending trendline near $306 gets taken out and sees a jump higher to the 55-day SMA.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.