As the SEC lawsuit against Binance intensified, Binance Coin (BNB) experienced a significant drop, hitting a six-month low and triggering bearish sentiment across other prominent cryptocurrencies.
Amidst the ongoing legal dispute between Binance and the US Securities and Exchange Commission (SEC), the native cryptocurrency BNB of the largest crypto exchange, Binance, is undergoing a substantial decline.
The SEC’s lawsuit against Binance has caused a notable repercussion on BNB, with the token’s price plummeting to a six-month low below $225. The allegations against the crypto exchange suggest its involvement in illicit activities, including numerous securities law violations. Furthermore, Binance is witnessing substantial whale activity and experiencing significant outflows from the exchange.
Binance bears the weight of the SEC lawsuit as its impact intensifies
Binance faces a significant obstacle with the SEC lawsuit, resulting in adverse consequences for BNB. The cryptocurrency has recently witnessed a substantial decline, dropping from its previous value of over $280 against the US dollar, signaling a prevailing bearish trend in the market.
Also Read: Surge in Sell Orders for Binance’s BNB Token Preceding SEC Lawsuits
During mid-April, BNB reached a notable peak of approximately $350, followed by a rapid downturn. The cryptocurrency broke through significant support levels at $280 and $250, eventually reaching a crucial support zone at $220. At present, BNB is trading below both the $250 mark and the 100-day simple moving average.
Binance Coin (BNB) Price Chart (Source: Tradingview)
As of the current writing, Binance Coin (BNB) is being traded at $225.50, accompanied by a 24-hour trading volume of $571 million and a market capitalization of $35 billion. The cryptocurrency has experienced a decline of more than 5% within a day and a significant drop of 24% within a week. The depicted chart indicates that the price of BNB is situated within the “strong sell” zone.
Moreover, the ongoing situation has imposed a bearish influence on other prominent cryptocurrencies such as Bitcoin and Ethereum.
Also Read: BNB Hacker Embezzles $600 Million Liquid, Highlighting Criticality
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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