• BNB (BNB) recently recorded its worst daily performance since November 2022, falling 8.5% to below $285.
• The ongoing decline in BNB’s price came as a part of a broader rising wedge breakdown.
• The sell-off pressure in the BNB market escalated primarily due to the United States Securities and Exchange Commission’s (SEC) crackdown on crypto company Paxos.
BNB (BNB) Price Decline
BNB (BNB) recently recorded its worst daily performance since November 2022, falling 8.5% to below $285. This decline was a part of a broader rising wedge breakdown which has caused the price to fall further by 15%.
SEC Crackdown on Binance USD
The sell-off pressure in the BNB market escalated primarily due to the United States Securities and Exchange Commission’s (SEC) crackdown on crypto company Paxos. The regulator has accused Paxos of issuing and listing Binance USD (BUSD), deeming it an unregistered security which resulted in address holders dumping over $207 million in stablecoins.
Risk for Further Sliding
A slew of technical, fundamental and on-chain indicators hint at more pain for BNB’s price by March with possibility of facing another sell-off remaining high. It is likely that the current levels may not be maintained beyond February while there is wide scope of further downside risk given that support at $250 level was seen in May, September and November 2022 .
Technical Analysis Indicators
Based on technical analysis rules, profit target for this pattern is measured after subtracting the maximum distance between upper and lower trendlines from breakdown point resulting into near $250 level as mentioned earlier. This hints at more bearish movements ahead if these levels are breached leading investors towards downward trading opportunities.
All these factors combined together make it likely that BNB token risks sliding further by March 2021 with possible technical indicators predicting bearish trends ahead leading investors towards downward trading opportunities unless support levels are maintained over time or regulatory framework changes drastically making markets favorable again for investment activity.