Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- BNB has eased into a key demand zone on the weekly timetable chart.
- CVD spot increased alongside an improvement in OI.
Binance coin [BNB] continued to bleed after the US SEC lawsuit on June 5. At the time of writing, BNB had depreciated 15% in the past seven days, according to CoinMarketCap, trading at $236 at the time of writing.
How many Worth 1,10,100 BNBs today?
However, Binance’s legal battle is not over yet. The US SEC is seeking restraining orders to freeze Binance’s assets. Although the exchange has asked the court deny the restraining orderthe ongoing confrontation could further impact BNB’s value.
A Descent To The Lows Of June 2022 – Is An End In Sight?
Source: BNB/USDT on TradingView
The weekly timetable chart showed that BNB’s plunge has reached the June/December 2022 lows. During the December 2022 FUD (Fear, Uncertainty, and Disinformation) surrounding Binance’s Proof of Reserves, BNB dropped to $220.
The $220 level corresponds to a bullish order block (OB) of $206 – $243 (cyan) on the weekly chart formed June 27, 2022. Moreover, it coincides with the low range of a parallel channel (blue) and the 200- MA (moving average).
So it could turn the $206 – $243 zone (cyan) into a strong bullish stronghold. Unfortunately, it could crack if Binance’s legal troubles worsen in the coming days/weeks. A drop below the confluence could taper off at $184 or $118.
Conversely, BNB could try to reverse the losses and target the mid-range ($293) if the demand zone doesn’t burst. The level also corresponds to the 50-MA.
Meanwhile, the RSI (Relative Strength Index) leveled off in the lower range, suggesting that selling pressure has eased. Similarly, the CMF (Chaikin Money Flow) moved sideways slightly above the zero mark – indicating capital outflows from subsidized BNB.
CVD and OI improved
Source: Coinalyse
Based on Coinalyze’s 1 hour time frame, a rising CVD (Cumulative Spot Delta) was observed – indicating that buyers are fighting for control from June 10th.
Read Binance Coins [BNB] Price prediction 2023-24
In addition, OI (open interest) rates improved from June 19, from <$300 miljoen tot >$340 million at the time of writing. While this suggests that bulls could defend the $206 – $243 demand zone, the outcome depends on the lawsuit and BTC price action.
By the way, according to Defi Llama, Binance Exchange recorded more than $2.7 billion in outflows in the past seven days. It suggests that some investors remained upset by the ongoing litigation.
