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The Price of BNB Could Plummet as Much as 40% Whilst SEC Probes Binance

Reuter's recent expose that Binance laundered at least $2.35 Billion in illicit funds also poses a downside risk to BNB....
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Reuter’s recent expose that Binance laundered at least $2.35 Billion in illicit funds also poses a downside risk to BNB.

Binance Coin ( BNB), price fell by almost 7.3% to below $275 on June 7, its lowest level in three consecutive weeks.

BNB prices could fall by 25%-40% more in 2022, as Binance, its parent company, is accused of breaking securities laws and laundering billions in illegal funds for criminals.

Two bad news stories in one week
BNB was originally issued in as a part of an initial cryptocurrency offering (ICO), which amassed $15 millions for Binance.

Binance tokens are primarily used as utility assets within the Binance ecosystem. They allow traders to receive discounts on trading activities. BNB is also a speculative asset that can be used to invest in other currencies. This has made BNB the fifth-largest cryptocurrency according to market capitalization.

According to Bloomberg sources, the U.S. Securities and Exchange Commission is now investigating whether the ICO in BNB tokens 2017 was a sale that should have been registered with regulator, .

This could lead to a drop in BNB’s value, which already has lost more than half its value since peaking at $700 in May 2021.

BNB maintains support for May-July 2021
BNB’s slide was not only bad news but also part of a wider correction trend in crypto markets. Top coins Bitcoin ( BTC), and Ether ( ETH_) both fell by 7% and 7.25 respectively on the same day.

BNB now tests the 61.8 Fib level of the Fibonacci Retracement graph (near $274), which is traced from the $10-swing low and $700-swing peak. This level served as support in the May-July 2021 session, which preceded a 170% price rise.

However, weak fundamentals and the Federal Reserve’s hawkish policy have increased the possibility that BNB could drop below the 61.8 Fib level.

This could mean that BNB’s 200-week exponential moving Average (200-week EMA, the blue wave), near $200, will be BNB’s next target. It is down 25% from June 7, when it was at its lowest price.

BNB/USD’s weekly relative strength indicator (RSI) is now at 34. This indicates that there is more room for a drop to 30. An oversold level which indicates buying sentiment.

BNB could see the 0.786 Fib line at $160 as support, a drop of 40% below June 7’s price.

If BNB holds steady above $274, it might rebound towards the area of its 0.5 Fib line at $355 and its 50 week EMA (the red waves) near $380. This is up more than 20% from its current price.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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