BNB’s price is currently displaying several negative indicators as it remains below the $220 mark. On the weekly chart, a significant bearish trend line is taking shape, with resistance around $275. If the price manages to close below $200 by the end of the week, it may experience a substantial decline.
BNB is facing challenges in initiating a rebound above $220. If the price slips below the $200 mark, it could spell trouble for the bullish momentum.
BNB Price Faces Trouble
Over the past few weeks, the price of BNB has experienced a consistent decline, falling from a position well above $300. Persistent bearish pressure pushed the price into a negative territory below $280.
Despite recent rebounds in Bitcoin and Ethereum, BNB struggled to initiate an upward correction. It appears that regulatory concerns surrounding Binance continue to impact its performance. Notably, Sam Bankman-Fried, the founder of FTX, accused Binance of disclosing FTX’s balance sheet.
He alleged, “Binance leaked our balance sheet, published it on their blog, provided it to Coindesk, and publicly announced the sale of $500 million worth of FTT in response. Simultaneously, they cautioned customers to be cautious when dealing with FTX.”
Caroline Ellison, the former CEO of Alameda, echoed similar concerns. She highlighted the same issues.
Former Alameda CEO Caroline Ellison says Binance CEO Changpeng Zhao's tweet "contributed" to the collapse of FTX.
— WhaleFUD (@WhaleFUD) October 13, 2023
There’s growing selling pressure on BNB, and it could lead to a significant drop in price. Currently, the price is well below the $250 support level and the 50-week simple moving average (blue line). It’s also trading below the 76.4% Fib retracement level, calculated from the last major rise starting at the $183 low and reaching the $397 high.
The BNB price is now approaching a critical support level at $200. If it fails to hold above this level, the next significant support is around $182. If it falls below this point, the price could drop further.
In the worst-case scenario, it might test the 1.236 Fib extension level of the previous significant rise, stretching from the $183 low to the $397 high, which is at $132. Further losses could open the door for a potential drop to the $50 support area.
New Upside?
BNB is encountering hurdles around the $220 area, with the next significant resistance near $235. The primary resistance level stands at $275, coupled with the 50-week simple moving average (blue line).
A notable bearish trend line is shaping up with resistance around $275 on the weekly chart. A decisive breakthrough above $275 and $280 resistances could initiate a new upward trend. In such a scenario, BNB might target the $350 level, and further gains could propel it towards the $400 resistance.
In summary, BNB is grappling to maintain its position above the key support at $200. A weekly close below $200 and $182 could lead to substantial downside. Conversely, a potential recovery might see the price reclaim $235.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
