Binance Coin Faces Price Drop As Trading Volume Hits $1.5 Billion – What’s The Next Support Level?

Over the past week, Binance Coin (BNB) has experienced a notable price decline. Specifically, the token is currently down by 7.29% within this period.

This decline could be attributed to several factors, such as the ongoing case involving Binance and the U.S. Securities and Exchange Commission (SEC).

The SEC has alleged that Binance and its CEO, Changpeng Zhao (also known as CZ), publicly claimed to have restricted U.S. customers from carrying out trading activities on the platform. 

However, the SEC noted that Binance and CZ bypassed their controls and allowed high-value U.S. customers to keep transacting on the exchange.

This legal case has probably affected the trading activity with the token, with its 24-hour trading volume dropping by 22.25% as of when writing. In the meantime, traders and investors can only speculate on the tendency for the token to hit a new support level.

BNB Token Started a Decline In June

Toward the end of May, Binance Coin (BNB) exhibited a relatively stable price range between $314 and $316. However, as June began, a shift in the price trend became apparent.

BNB started to experience a gradual decline, with its value decreasing to around $306. This initial drop indicated a slightly bearish sentiment entering the month.

In the first five days of June, BNB continued to maintain a narrow trading range, hovering between $304 and $307. Although the price remained somewhat stable, it was evident that the market lacked significant upward momentum. 

Traders and investors were cautious, closely monitoring any developments that could impact BNB’s price. This gradual decline reflected a growing bearish sentiment among market participants.

The turning point came on June 6, when BNB experienced a more substantial decline. Its value plummeted to the $200 price range, significantly dropping from its preceding levels. 

Technical Indicators on BNB Price Suggest Bearish Trend Ahead

The BNB (Binance Coin) token currently exhibits several technical indicators suggesting a bearish trend in its future price.

One such indicator is the Moving Average Convergence Divergence (MACD), which compares the token’s short-term and long-term moving averages. The MACD line positioned below the signal line signifies a bearish sentiment in the market.

Moreover, the token’s price is currently trading below the 50-day and 200-day Moving Averages (MA), commonly used to analyze price trends over specific periods.

When the price remains below these moving averages, it indicates a weakened market sentiment and a struggle to maintain upward momentum. This reinforces the notion of a bearish trend for BNB.

In addition to the MACD and moving average indicators, another bearish signal is the occurrence of a death cross. A death cross pattern emerges when the 50-day Moving Average crosses below the 200-day Moving Average. 

This event is often considered a strong bearish signal as it suggests a potential shift from a previously bullish trend to a bearish one. Furthermore, the Relative Strength Index (RSI) reading is below the 30 marks, implying an oversold condition suggesting the possibility of a price rebound.

However, in this context, the RSI at 26.56 reinforces the bearish trend and suggests that the token’s price may have further room to decline before potentially finding support.

Considering these technical indicators, it is possible to anticipate a longer bearish trend for the BNB token. The next significant support level, as indicated in the chart, is at $220.

This support level may act as a potential price point where buying pressure could increase and potentially halt the downward momentum.

Recent Developments In The BNB Network

The launch of the BNB Chain layer-2 blockchain solution

The renowned cryptocurrency exchange, Binance proudly announced the highly anticipated unveiling of its revolutionary Layer-2 blockchain solution on BNB Chain. This cutting-edge development usher in a new era of scalability and efficiency for the industry.

In a captivating teaser video on June 15 via BNB Chain’s official Twitter account, viewers were provided with a sneak peek into the remarkable capabilities of the Layer-2 Blockchain Solution.

The video showcased a state-of-the-art ecosystem equipped with unprecedented performance features, promising increased transaction capacity and cost-effective processing.

Notably, the video hinted at an astounding gas-per-second capacity of 100 million, signaling a groundbreaking leap in scalability. BNB Chain’s social media bio now teases a novel approach to project scaling by adopting their Layer-2 solution.

This indicates that BNB Chain is ready to empower developers and businesses with the tools and infrastructure to unlock their full potential.

Introducing the Luban network upgrade

Integrating the Luban network upgrade and hard fork marks a significant milestone for BNB Chain.

Following the successful implementation of the Luban hard fork upgrade, BNB Chain has positioned itself as a prominent player in the industry.

The Luban upgrade, known for its enhanced security, reliable transaction processing, and swift finality, has paved the way for transformative advancements that will redefine the future of the network.

Combining three meticulously crafted Binance Smart Chain Evolution Proposals (BEPs) – BEP-221, BEP-174, and BEP-126 – the Luban upgrade has amplified the network’s overall speed, performance, and security.

One standout feature introduced by BEP-126 is Fast Finality, a game-changer that minimizes the risk of block reorganizations and fortifies security.

This upgrade provides unparalleled protection against double-spending and MEV reorg attacks, ensuring the irreversibility of confirmed transactions.

Cryptocurrency exchanges and decentralized finance (DeFi) protocols now have a robust foundation for seamless operations and efficient functionality.

About Binance

Established in 2017, Binance has emerged as a prominent force in cryptocurrencies. As one of the leading cryptocurrency exchanges, Binance offers a platform that enables users to trade a wide range of altcoins in multiple countries.

With a diverse selection of over 360 different crypto assets, Binance provides a comprehensive trading experience for crypto enthusiasts and investors.

The platform supports popular cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, Binance Coin, Litecoin, and many others, catering to the demands of traders seeking a variety of investment options.

Binance has built a reputation for its robust security measures and user-friendly interface, ensuring a safe and seamless trading environment.

The exchange’s intuitive features and powerful trading tools empower users to make informed investment decisions and execute trades with ease.