The crypto market has witnessed a significant correction of over 2.5% in value within the past day. Bitcoin records a loss of 2.8%, with Ethereum’s price back below the resistance level of $2,000. The drop comes following the news of Changpeng Zhao (CZ) officially stepping down as the CEO after pleading guilty to money laundering.
Following the official statement, the Binance coin has lost over 9.5% in value, with its trading volume recording an increase of 61% within the past day, a total of over 2.53 Billion, suggesting an ongoing panic selling in the market.
Following the announcement of the Binance exchange, the BNB Chain ecosystem was expected to record significant movement, but the tokens were largely unaffected by the post-news breakup. Major coins continue to trade within their market sentiments, indicating self-sufficiency in the crypto space.
Binance Coin Price Analysis:
Despite the market’s surge during October, the BNB coin price traded in a narrow range between $220 and $229. The Binance coin displayed a minor bullish move at the start of the month, following which the price broke out but traded close to the resistance/support level.
Binance coin then gained momentum and recorded a value gain of over 11% within a week before being rejected at $255.6, indicating a trend reversal in the market for the coin.
For a brief period, the BNB token was seen trading between $238.3 and $255.6. During this time, the price made multiple attempts to break out of the consolidated range, but the bears held power, resulting in the coin failing to break out.
Recently, the bulls displayed a notable run as the price successfully broke out of the key resistance level and continued to rise, but the rally was short-lived as the price was rejected at $272.
Following the news, the price recorded a significant correction in value. The price lost momentum, resulting in it breaking down multiple support levels. Further, the price broke down its crucial support level at $229, but the bulls quickly pushed it above it.
The BNB coin price is trading close to its resistance level of $238.3 and is expected to test it soon, of which the outcome is unpredictable.
Will BNB Price Continue To Drop?
The Moving Average Convergence Divergence (MACD) displays a strong rising red histogram, indicating a massive sell-off in the market for this coin. Further, the averages show a sharp decline, suggesting the price will continue losing value in the coming days.
If the bulls gain power and push the price above the resistance level of $238.3, the BNB price will regain momentum and may start trading positively. Further, if the bulls maintain the price at that level, the Binance token will attempt to test its upper resistance level of $255.6 in the coming days.
Conversely, if the bears continue to gain weight, the BNB token will lose momentum and fall to test its support level of $229 soon. Moreover, if the bears continue to dominate the market, the price will continue to dip and prepare to test its crucial support level of $220 this week.
Moreover, if the exchange records massive panic selling, the price will continue to bleed and test its crucial support level of $213.5 in the coming time.
