Recent BNB price trends show that the token declines in the short term after regulatory crackdowns. However, this time the correction may last longer.
BNB ($310) looks set to wipe out its gains in March entirely as investors turn their attention to the latest regulations on Binance, the world’s largest crypto exchange by volume.
On March 27, the United States Commodity Futures Trading Commission filed charges against Binance and its CEO Changpeng Zhao (CZ), alleging that the company provides illegal crypto exchange services to Americans and facilitates financial services is incorrect.
BNB fell by more than 5.5% to $305 on the day of the announcement, posting its worst daily performance since February 13, when its price fell by more than 5.8% due to another regulatory move related to the Binance-branded stablecoin, BUSD.
BNB price was stable on March 28, swinging between gains and losses as CZ defended CFTC charges. However, the BNB/USD pair may fall further considering its recent response to the regulatory framework. For example, the New York regulator’s decision on BUSD in February 2023 preceded a price reduction of BNB by more than 15%.
Similarly, BNB fell by 10.75% after the Dutch Central Bank paid Binance $3.4 million in July 2022 for offering crypto services without a license. It fell 25% in February 2022 after Binance suspended operations in Israel due to fears of an explosion.
Binance-CFTC FUD triggered a bearish reversal earlier in February. This setup shows a rising wedge pattern whose break could lead to a 25% price reversal to $250 by the end of March. The banking crisis in March and its positive impact on advanced crypto assets may have dampened bearish calls. At the same time, BNB is looking at an extended price drop to $200 due to the formation of another rising wedge pattern on the daily chart as seen below.
At the same time, BNB is looking at an extended price drop to $200 due to the formation of another rising wedge pattern on the daily chart.
Therefore, the price of BNB may fall by 30% from April, measured by the current price level.
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