• 23 July, 2024
Market News

Binance Price Sustains $300 Post CFTC Conflict; Is $200 Next For The Coin?

CFTC alleged Binance of having more than 300 trading accounts under the control CZ, and these accounts trade crypto

Binance coin witnessed a brief relief following the regulatory action against the crypto exchange, and CEO. Despite news of a civil enforcement action from the CFTC causing a 5% drop on March 27, BNB has climbed back up to $314.62. As of press time, BNB/USD is trading at $316.65, up 0.92% for the day.

However, the risk of  further downfall is not entirely out of the scene. After testing all time high of $353.28, the BNB price retraced toward the critical support level around $300. BNB slipped more than 5.5% to $305 on the day of the lawsuit, logging its worst daily performance since February 13, when the price lost nearly 6% due to another regulatory crackdown involving Binance-branded stablecoin Binance USD.

Source: Trading view

BNB price stabilizes oscillating between bullish and bearish sentiments as CZ denies CFTC’s allegations. But, one thing to keep in mind before making any investment decision is that the BNB could still fall by looking at the previous trend following the regulatory actions.

As can be seen in the above chart, the New York regulator’s BUSD crackdown in February came before more than 15% price decline. Further, after the Dutch Central Bank imposed a $3.4 million fine on Binance July 2022, the coin price plunged 10.75%.

Daily Chart shows a support around $300

Source: Trading view

On the daily time frame, the BNB price found support at the 0.61% Fibbo. Retracement level, that extends from the low of $220. The Relative Strength Index (RSI) reads at 50, but below the average line. 

If the sellers become active once again the support barricade of $308 will be broken, and the price could drop toward $260, followed by $200.

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