Binance-CFTC FUD puts BNB price at risk of drop toward $200

BNB (BNB) looks acceptable to hitch retired its March gains wholly arsenic investors crook their attraction to the latest regulatory crackdown connected Binance, the world's starring crypto speech by volume.

BNB terms logs worst regular show successful implicit a month

On March 27, the U.S. Commodity Futures Trading Commission sued Binance and its main enforcement Changpeng Zhao (CZ), alleging that the institution illegally offered crypto derivatives services to Americans and facilitated illicit fiscal activity.

BNB dropped by implicit 5.5% to $305 connected the announcement day, logging its worst regular show since Feb. 13, erstwhile its terms dropped by implicit 5.8% owed to different regulatory crackdown involving Binance-branded stablecoin, BUSD.

BNBUSD regular terms chart. Source: TradingView

BNB's terms stabilized connected March 28, wobbling betwixt gains and losses arsenic CZ refuted CFTC's allegations. However, the BNB/USD brace risked falling further if 1 considers its caller effect to regulatory actions. 

For instance, the New York regulator's BUSD crackdown successful February 2023 preceded a 15%-plus BNB terms decline.

BNB terms absorption to regulatory crackdowns since 2022. Source: TradingView

Similarly, BNB plunged by up to 10.75% aft the Dutch Central Bank slapped a $3.4 cardinal good connected Binance successful July 2022 for offering unlicensed crypto services. It besides dropped 25% successful February 2022 aft Binance halted its operations successful Israel, fearing a crackdown.

Rising wedge breakdown underway

The Binance-CFTC FUD has triggered a bearish reversal setup antecedently covered successful February. 

Related: Here’s however Binance is mitigating its stablecoin needs aft BUSD ban

This setup involves a rising wedge signifier whose breakdown could pb to a 25% terms correction toward $250 by the extremity of March. The March banking crisis and its affirmative interaction connected top-ranking crypto assets whitethorn person delayed the bearish call. 

BNB/USD regular terms illustration featuring rising wedge breakdown setup. Source: TradingView

Simultaneously, BNB eyes an extended terms diminution toward $200 owed to the enactment of different rising wedge signifier connected the regular chart, arsenic shown below.

BNBUSD regular terms chart. Source: TradingView

Therefore, BNB terms could driblet by arsenic overmuch arsenic 30% by April erstwhile measured from existent terms levels. 

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.