BNB Price Analysis: Are We Witnessing the Start of a Major Downturn?

15 Sep 2023 by Crypto Presale 2 min read

Over the last 24 hours, Binance Coin's (BNB) price has declined by 0.46%, falling from $214 earlier in the week to $211.9. Zooming out a bit, BNB has declined by 1.24% in the past week and fallen by 15% since the start of the year. This continuous decline confirms that 2023 has not been a great year for BNB investors.

The drop in BNB's price is linked to various factors. Legal issues, especially a lawsuit by the U.S. Securities Exchange Commission (SEC) for alleged violations, have stirred negative feelings among investors. Similarly, reports about Binance aiding Russian users in moving money during international sanctions have shaken investor confidence. This triggered emotional responses and made investors rethink their BNB holdings, contributing to the decline.

Technical Analysis

Daily Timeframe

Source: Tradingview

BNB started the year on a good note, rallying 41% from a little below $250 in January 2023 to $345 in April. However, since May, the token has been on a steady decline, falling as low as $203 in September. The selling pressure has been caused by several fundamental events, one being the aforementioned US SEC's cases against major exchanges, including Binance.

Right now, BNB is resting on major support around the $203 key level, which is the only hindrance stopping the token from falling to $180. On the daily timeframe, BNB is trading below both the 200-day and 50-day EMAs, which shows that the token is in a downtrend. The Relative Strength Index also confirms this, as we can see that the indicator has been trending below the 50% band since May.

If the buyers fail to push the token back up and the $203 key level fails to hold, we might see BNB crash to $180 in the coming weeks. However, we must acknowledge the possibility of a rally. For that to happen, the resistance at the $230 and $256 levels must be cleared, and we could see BNB rally to $300.

4 Hour Timeframe

Source: Tradingview

BNB has been ranging between the $203 and $216 mark since the start of September. Right now, it looks like the $203 minor support will be broken. If this happens, then we might see the token fall to $180. The 50-day EMA is currently acting as dynamic resistance, and this can keep trending downwards. Also, buyers have been unable to break above the 50% RSI band, which shows that the sellers are still dominant.

What’s Next for Binance Coin (BNB)?

Right now, there is a growing concern in the crypto market about a big sell-off of recovered assets on the FTX exchange, which could affect the market. When this happens, it could cause a negative reaction in the market, and BNB may drop faster than anticipated.

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