The cryptocurrency market is under the intense scrutiny of the SEC, which has led to a strong bearish trend in numerous digital assets. Many coins have been caught in this storm, with Binance Coin (BNB) embodying the pinnacle of this bearish wave. The US Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, alleging that BNB is a security, a development that has led to a sharp fall in the value of the coin.
Binance Lawsuit: A Cloud Over BNB?
Binance, the world’s largest cryptocurrency exchange by trading volume, has recently been hit with a lawsuit, adding a layer of uncertainty to BNB’s future. With the SEC making 13 allegations against Binance, including selling unregistered securities and mixing client funds, there is a good chance that BNB will face even more downturns in the near future.
However, if Binance can successfully counter these charges, the situation could change. But as the Commodity Futures Trading Commission (CFTC) is also pursuing a lawsuit against the exchange on similar grounds, the outlook for BNB seems rather bleak.
In the lawsuit, the SEC accuses Binance and BAM Trading of violating federal securities laws by “conducting unregistered offerings and sales of securities to U.S. investors” through BNB, BUSD, the “BNB Vault” scheme, the “Simple Earn program and BAM Trading’s staking-as-a-service program.
Since inception, BNB and BUSD have been “presented and sold as an investment contract, and therefore security,” the lawsuit said.
For the first time since March 13, 2023, the price of BNB fell below $300. Despite still up 20% for the year, the cryptocurrency, which ranks fourth in terms of market cap, is now aiming to drop below $250.
What to expect from BNB Price Next?
On June 5, BNB’s tight trading range took a downward turn of $300. The SEC’s lawsuit against Binance triggered an extreme panic sell, sending the BNB price plummeting to a low of $272. As of now, the BNB price has gained support at $272 which started a small uptrend to move past the 23.6% Fib level.
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Currently, the price of BNB token is trading at $278.84, down more than 7.5% in the past 24 hours.
If the price bounces back from $265 and crosses $290, it would indicate robust buying at these lower levels. The BNB price could then move towards the 100-day EMA at $304, where the bulls are likely to face fierce selling resistance from the bears.
Conversely, a break and close below the $265 support level could trigger a new bearish trend. The BNB price may then fall to $241 and then to $220.