Binance Coin drops below $300 due to $1.5 billion trading volume. What is the next support level?

The price of Binance Coin has dropped by 8% in the last 24 hours, reaching $276, following the Securities and Exchange Commission (SEC) opening legal proceedings against Binance.

This represents an 11% decrease in the past week and a 15% reduction in the last 30 days, although BNB has increased by 12% since the beginning of the year.

However, as the SEC has charged Binance with 13 offenses, including the sale of unregistered securities and the combining of customer funds, it is highly likely that BNB will continue to decline in the coming days, weeks, and months.

This may change if Binance can mount a strong defense against the new charges, but with the Commodity Futures Trading Commission (CFTC) also suing the exchange for similar allegations, the outlook for BNB is not very promising.

Binance Coin Price Prediction as $1.5 Billion Trading Volume Sends BNB Coin Below $300 – Where is the Next Support Level?

If there is one positive thing to say about BNB right now, it is that its indicators suggest it is very oversold, which in normal conditions would imply a rebound.

The coin’s relative strength index (purple) fell below 20 yesterday, indicating intense selling, as highlighted by its trading volume exceeding $1.5 billion.

In addition, BNB’s 30-day moving average (yellow) has fallen much further below its 200-day average (blue) and could continue to drop for several more days.

Ultimately, the cryptocurrency’s decline should theoretically bottom out, and it should begin to recover, as evidenced by the coin rising 1% from its lowest price yesterday.

However, BNB’s drop is not solely the result of a cyclical sell-off but stems from the serious charges it now faces from the SEC.

The US securities regulator has charged both Binance and its founder, Changpeng ‘CZ’ Zhao, with 13 violations, many of which mirror similar charges leveled by the CFTC against the exchange in March.

As detailed in the SEC’s announcement, these include “operating unregistered exchanges, broker-dealers, and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and the unregistered offer and sale of securities.”

Furthermore, one of the more serious allegations states that “Zhao and Binance exercise control of the platforms’ customers’ assets,” enabling them to divert user funds and use them “as they please.”

Regarding BNB itself, the SEC claims it is an unregistered security, along with the “so-called stablecoin” Binance USD (BUSD) as well as several crypto-based lending products and staking services.

These charges together account for BNB’s sharp decline yesterday.

However, Binance has unsurprisingly responded strongly to the allegations, stating that “any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong.”

It is also worth noting that there has not been a significant increase in withdrawals on Binance yet, with data shared by CryptoQuant suggesting there has been a slight uptick in deposits in the hours following the news.

Therefore, it is tempting to conclude that even if the SEC has a case against Binance, it may not harm the exchange’s business in the long run, which can continue to grow with only a limited or no presence in the US.

For this reason, BNB may see a recovery in the medium or long-term, although it may fall slightly lower in the coming days, perhaps to $250 or even lower.

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Although BNB could eventually recover, it may not rally anytime soon, leaving traders looking for gains to search elsewhere.

Fortunately, there are several new alternative coins (altcoins) available in the market that have the potential to experience rallies above the average, with various pre-sale tokens showing particular promise.

One of these is ecoterra, which is a recycle-to-earn platform based on Ethereum. Ecoterra has raised over $4.8 million in its pre-sale for its native ECOTERRA token.

Ecoterra’s platform will reward its users, through ECOTERRA and NFTs, for recycling household waste at participating recycling points once it is launched later in 2023. The platform will also reward users for providing evidence of using renewable energy. In addition, green behavior will be further incentivized through a marketplace for NFT-based carbon offsets.

Investors can participate in the pre-sale by visiting the official ecoterra website and connecting their software wallets. Currently, 1 ECOTERRA costs $0.00925, but this will increase to $0.01 in just over 22 days. The coin’s strong fundamentals are likely to help it experience healthy rallies once it is listed on exchanges in the next few months.

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