The market capitalization of BNB (BNB) has fallen by more than $7 billion since June 5, when the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance.
BNB price looks for a technical bounce
The impact of the SEC lawsuit on Binance has been substantial so far, with BNB down nearly 15% so far this week.
On June 6, the SEC asked the US District Court for the District of Columbia to freeze Binance’s US assets worldwide. The order, if approved, will likely force the exchange to repatriate “fiat currency and crypto assets deposited, held, traded, and accumulated by clients” on its US platform.
Meanwhile, the US entity Binance halted trading in several pairs, including Bitcoin (BTC), Tether (USDT) and Binance USD (BUSD).
Theoretically, these developments risk stirring people’s buying sentiment for BNB, as it has been incorporated as a utility token in the Binance ecosystem.
However, the technical data paints a potentially different picture, at least in the short term. The BNB/USD pair looks set for a short-term bounce as it trades around a critical support level and its daily Relative Strength Index (RSI) has entered the “oversold” region below 30.
In this case, BNB price is likely to lock onto its downtrend line resistance point near $280 as the next bullish target in June, 7% above current price levels.
Besides, BNB’s decisive close below its multi-month uptrend line support means $240 should be watched as a possible bearish target in June. Down around 10% from current price levels, this level appears outside of the rising wedge breakout scenario (purple).
Binance token BNB at $180 in 2023?
Independent market analyst TraderSZ believe that BNB could fall towards the low of $180 in 2022 due to the ongoing battle between Binance and the SEC.
Interestingly, the ongoing breakout of a descending triangle pattern for the BNB price suggests the same thing.
Descending triangles are typically viewed as bearish continuation patterns in an overall downtrend. They are normally resolved when the price breaks below its lower trend line support with the price falling as much as its high.
As a result, BNB risks falling towards its triangle target of around $180 in 2023, which is around 30% down from current price levels.
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