The cryptocurrency market has been under the intense gaze of the SEC, leading to a strong bearish trend across numerous digital assets. Many coins have been caught in this storm, with Binance Coin (BNB) epitomizing the peak of this bearish wave. The U.S. Securities and Exchange Commission (SEC) has initiated a lawsuit against Binance, asserting that BNB is a security, a development that has triggered a sharp decline in the coin’s value.
Binance’s Lawsuit: A Cloud Over BNB?
Binance, the world’s largest cryptocurrency exchange by trading volume, has recently been hit with a lawsuit, adding a layer of uncertainty to BNB’s future. With the SEC leveling 13 accusations against Binance, encompassing the sale of unregistered securities and the mixing of client funds, there’s a high probability that BNB could face additional downturns in the near future.
However, if Binance can successfully counter these charges, the situation might change. But given that the Commodity Futures Trading Commission (CFTC) is also pursuing a lawsuit against the exchange on similar grounds, the outlook for BNB appears rather bleak.
In the lawsuit, the SEC accuses Binance and BAM Trading of breaching federal securities laws by “carrying out unregistered offers and sales of securities to U.S. investors” via BNB, BUSD, the “BNB Vault” scheme, the “Simple Earn” program, and BAM Trading’s staking-as-a-service program.
Since inception, BNB and BUSD have “been presented and sold as an investment contract, and hence, as a security,” according to the lawsuit.
For the first time since March 13, 2023, BNB’s price dipped below the $300 mark. Despite still boasting a 20% increase for the year, the cryptocurrency, which ranks fourth in terms of market capitalization, is now aiming to drop below $250.
What To Expect From BNB Price Next?
On June 5, BNB’s tight trading range took a downward turn from $300. SEC’s lawsuit against Binance created an extreme panic selling, plunging the BNB price to a low of $272. As of now, BNB price has taken a support at $272, initiating a minor uptrend to surge past its 23.6% Fib level.
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Currently, the price of BNB token trades at $278.84, declining over 7.5% in the last 24 hours.
If the price rebounds from $265 and surpasses $290, it would signal robust buying at these lower levels. The BNB price could then ascend to the 100-day EMA at $304, where the bulls are likely to face fierce selling resistance from the bears.
Conversely, a break and a close beneath the $265 support level could trigger a new bearish trend. The BNB price might then plummet to $241, and subsequently to $220.
