Hit indirectly by the Securities and Exchange Commission, Binance Coin (BNB) seems to be holding up well.
Binance Coin, facing some less-than-positive news and an indirect SEC attack, appeared as if it was going to see its value drop, but BNB held up.
The SEC’s indirect attack against Binance Coin (BNB)
My enemy’s friend is my enemy, recited a popular saying, and that is exactly what happened between the SEC, Binance and Paxos.
Let’s go in order, first and foremost there is to say that Binance Coin (BNB), all things considered, is holding up well against the US regulator’s blow (€284.94).
BNB’s price is suffering from the influence BUSD causes it indirectly because of the Securities and Exchange Commission’s attacks.
BNB and BUSD are not related to each other in a direct way, the only thing they have in common is the fact that fees to send BUSD are also paid in BNB.
BUSD, which is a stablecoin directly linked to the performance of the US dollar, is issued by Paxos, which uses on Binance, but is the real maker.
Paxos has halted the issuance of new BUSD and the relationship with Binance.
The discontinuation of the cooperation was necessary precisely to protect the world’s largest exchange from possible contagion.
The one to suffer in the market is not BUSD as a superficial analysis might suggest but BNB.
BUSD cannot deviate much from the value of 1 US dollar except for very brief spikes that are quickly reabsorbed and therefore the ball is in BNB’s court.
Paxos has the ability to redeem BUSD at the price of 1 US dollar and this protects them from fluctuations, at least for now.
For some analysts, the attack on Paxos and thus BUSD is just the Trojan horse to get at Binance.
Even last year Binance proved to hold up well to market shocks.
BNB’s drop in 2022 was 57% compared to Bitcoin’s 68% drop and Ethereum’s 69% drop.
The drop of BNB is smaller than expected
Binance has been affected by the SEC vs Paxos case precisely because of the fact that it indirectly cooperates with Paxos itself.
BNB has shown some resilience to the US regulator’s shoulders but although less than expected, the drop seems to be continuing.
Like a shark that smells blood, the market is pressuring the exchange.
News of the trading freeze on BUSD from next month has sparked fear among investors.
Besides the Securities and Exchange Commission, another attack comes from the influential Forbes magazine.
Forbes points its finger at the world’s largest exchange accusing it of conduct similar to the FTX case.
For the magazine, the transfer of $1.78 billion of stablecoin into wallets that are located in different exchanges is evidence of this.
The conduct seems to echo that of Sam Bankman-Fried on FTX and has certainly contributed to the agitation among investors.
Analysis and scenarios of BNB
Technical analysis is not a certain prediction of the future but certainly a tool that helps us understand possible scenarios.
If we look at the weekly Binance Coin (BNB), we will notice that the trading range for almost a year now has been 120 US dollars.
The price range of $240 to $350 was an exception in May.
In May last year, the price had fallen below the minimum threshold and then immediately rose again.
Today BNB is worth €287.57 recording an increase of 0.94% which bodes well for a return to the famous $360.
The RSI index from BNB to the upside and analysts agree that Binance Coin in the near future could continue to be bullish.
Resistance just above the already challenging $360 level is set at $470, but if the momentum is not sufficient we could go back to the $240 floor.
If we move from the weekly to the daily range of Binance Coin (BNB), it is possible to pick up indications of its near future.
Following a corrective structure and a downward divergence on the RSI in the daily, there are fears of a small decline.
In the long term, however, the trend should turn bullish again as indicated by the technical analysis of the weekly.
Should the correction stop in a very tight time frame but go slightly below expectations, it could be the litmus test for which the correction has exhausted itself.
If this were to occur, the $360 resistance area would be the new target.
Bottom line is that a setback could occur but in the long run Binance Coin (BNB) is expected to rise.