• BNB (BNB) recorded its worst daily performance since November 2022, falling 8.5% to below $285.
• The ongoing decline in BNB’s price came as a part of a broader rising wedge breakdown.
• Markets have become fearful after the United States Securities and Exchange Commission’s crackdown on crypto company Paxos.
Binance’s BNB Token Risks Sliding Further by March
Price Drop Since November 2022
BNB (BNB) has experienced its worst daily performance since November 2022, dropping 8.5% below $285. Despite some recovery back to over $298, the possibility of another sell-off remains high.
Rising Wedge Breakdown Pattern
On Feburary 9, BNB broke out of its rising wedge pattern, which is a bearish reversal setup that forms when the price trends upwards inside a range defined by two ascending, converging trendlines. This means that BNB’s profit target is near $250 – down about 15% from current prices – which was previously seen as support in May, September and November 2022.
SEC Crackdown on Binance USD
The SEC has accused crypto company Paxos of issuing and listing an unregistered security called Binance USD (BUSD). This news has caused market fear and decreased the number of addresses holding between 1,000 and 10 million BUSD by over $207 million in stablecoins according to Santiment data. Due to these ramifications, the price of BNB has been pushed lower than before with high trading volume being seen as well..
Technial Indicators Suggest Further Pain for Price
A slew of technical indicators suggest more pain for the price of BNB in February due to more selling pressure continuing into March as well if no improvements are made soon.
Conclusion
In conclusion, there are several reasons why it appears that further sliding could be seen for the price of Binance’s token (BNB) come March 2021 due to a variety of technical indicators that point towards doom for the cryptocurrency’s value unless something changes soon.