BNB at Risk of Sub-$220 as Bears React to the Binance US Response

Key Insights:

• On Friday, BNB joined the broader market in the red, falling 0.57% to end the day at $261.
• Binance-related news continued to grip the crypto news wires following the SEC Court filings.
• The technical indicators remained bearish, signaling a return to sub-$200.

On Friday, binance (BNB) slipped by 0.57%. Partially reversing a 1.04% gain from Thursday, BNB ended the day at $261. Significantly, BNB fell short of the $270 handle for the second time since January.

After a mixed start to the day, BNB fell to a mid-morning low of $256. BNB fell through the First Major Support Level (S1) at $257 before rising to an early afternoon high of $265. However, falling short of the First Major Resistance Level (R1) at $267, BNB eased back to end the day at $261.

Binance Responses to the SEC Court Filing Leave BNB in the Red

There were no US economic indicators or Fed commentary to distract investors from the crypto news wires.

However, Binance US delivered a blow to BNB and the broader crypto market. In response to the SEC Court filing against Binance US, Binance, and Binance CEO CZ, Binance US announced the suspension of US dollar deposits and the pause on fiat (USD) withdrawals from June 13, 2023.

The Binance US announcement didn’t hold back, stating,

“The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. Binance US and our business partners have not been spared in the use of these tactics, which has created challenges for the banks with whom we work.”

Binance US added,

“We are taking these proactive steps as we – for a time – transition to a crypto-only exchange. To be clear, we maintain 1:1 reserves for all customer assets.”

Binance US concluded,

“Binance US will continue to vigorously defend ourselves, our customers, and industry against the meritless attacks of the SEC.”

On June 5, the SEC issued a press release relating to the Court filing against Binance US, Binance, and Binance CEO CZ.

The Day Ahead

With no US economic indicators or Fed chatter to draw interest, we expect investors to respond further to the SEC v Binance-related news throughout the weekend.

The announced shift in the Binance US platform to a crypto-only platform will result in more withdrawals that will weigh on BNB and sentiment across the broader crypto market.

However, investors should monitor updates from the ongoing SEC v Ripple case. A Ripple victory could question the likely success of the SEC’s case and draw US lawmaker scrutiny.

Binance (BNB) Price Action

This morning, BNB was down 8.94% to $237. A bearish start to the day saw BNB slide from a high of $261 to a new 2023 low of $230. BNB fell through the Major Support Levels.

BNB Technical Indicators

Resistance & Support Levels

BNB has to move through the Major Support Levels and the $260 pivot to target the First Major Resistance Level (R1) at $265. A move through the morning high of $261 would signal an extended bullish session. The crypto news wires should be crypto-friendly to support an extended rally.

In the event of an extended rally, BNB would likely test the Second Major Resistance Level (R2) at $269 and resistance at $270. The Third Major Resistance Level (R3) sits at $278.

Failure to move through Major Support Levels and the pivot would leave BNB at risk of a return to sub-$220. A move through the Third Major Support Level (S3) at $243 would signal the beginnings of a recovery.

Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bearish signals. BNB sat below the 50-day EMA ($277). The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, sending bearish signals.

A rebound and move through R1 ($265) would bring R2 ($269) and the 50-day EMA ($277) into play. However, failure to break through S3 ($243) would give the bears a run at sub-$220.