Binance Coin (BNB) holds $220 support despite regulatory pressure.

Binance Coin (BNB), which is the native token of the Binance ecosystem, has faced significant challenges due to the recent lawsuits filed by the US Securities and Exchange Commission (SEC) against both crypto exchange Binance and Coinbase.

These regulatory actions have had a profound impact on the cryptocurrency market, stifling any potential upward momentum. As a result, Bitcoin (BTC) retested its lowest point in two months, plummeting to $24,000 at the time of the filing.

While BNB also endured the repercussions of the regulatory pressure, it managed to find some stability around the $220 support level.

The question now is how Binance Coin will navigate through the tough US regulations and maintain its position within the cryptocurrency landscape.

Challenges For BNB’s Upside Potential

In the latest report on BNB price, a Fibonacci retracement tool has been employed based on the price action observed in the second quarter of 2023. This tool reveals two significant obstacles that could impede BNB’s upward trajectory.

The first obstacle lies at the 23.6% Fibonacci level, marked at $250.8, while the second hurdle resides at the 38.2% Fibonacci level, indicated by $269.8. Should BNB encounter a price denial at these resistance levels, it is likely to experience a retracement, possibly revisiting the $220 support level.

BNB market cap currently at $37.9 billion on the daily chart: TradingView.com

Prone To Aggressive Sell-Off Upon Breaching Strong Support

Source: Coingecko

At CoinGecko, the current price of BNB stands at $243, reflecting a slight decline of 0.9% over the past 24 hours; however, it has experienced a notable seven-day rally of 8.6%.

Meanwhile, since the SEC sued Binance, open interest (OI) rates for BNB have gradually increased. The OI has increased from $316 million on June 5 to the current level of $385 million. The rising number of open contracts for BNB on the futures market indicates an optimistic outlook.

Source: Coinglass

With Binance Coin currently facing significant hurdles at key levels, the outcome of this price analysis raises the question of whether BNB will manage to overcome these obstacles and regain its upward momentum.

Traders and investors will be closely monitoring the price rejection scenario, the strength of support levels, and the buying pressure indicators to assess BNB’s future performance in the crypto market.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Currency.com

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