BNB price risks 40% drop as SEC launches probe against Binance

BNB price risks 40% drop as SEC launches probe against Binance

Downside risks for BNB also come from a recent Reuter exposé that claims Binance laundered “at least $2.35 billion in illicit funds.”

Binance Coin (BNB) price dropped by nearly 7.3% on June 7 to below $275, its lowest level in three weeks.

What’s more, BNB price could drop by another 25%–40% in 2022 as its parent firm, Binance, faces allegations of breaking securities rules and laundering billions of dollars in illicit funds for criminals.

Bad news twice in a row

BNB was issued as a part of an initial coin offering (ICO) in 2017 that amassed $15 million for Binance.

The token mainly behaves as a utility asset within the Binance ecosystem, primarily enabling traders to earn discounts on their trading activities. Simultaneously, BNB also functions as a speculative financial asset, which has made it the fifth-largest cryptocurrency by market capitalization.

BNB market capitalization was $45.42 billion as of June 7. Source: CoinMarketCap

As a result, the U.S. Securities and Exchange Commission (SEC) is investigating whether the ICO of BNB tokens in 2017 was a sale of securities that should have been registered with the regulator, according to sources contacted by Bloomberg.

This risks putting downward pressure on BNB’s price, which has already lost more than half of its value after peaking out in May 2021 at around $700.

BNB holds above May-July 2021 support

In addition to the bad news, BNB’s plunge also came as a part of a broader correction trend elsewhere in the crypto market, with top coins Bitcoin (BTC) and Ether (ETH) dipping by 7% and 7.25% on the same day.

Now, BNB tests the 61.8 Fib retracement level (near $274) of the Fibonacci retracement graph sketched from its $10-swing low to $700-swing high. Interestingly, the same level was instrumental as support during the May–July 2021 session that preceded a 170% price rally.

But weak fundamentals, including the Federal Reserve’s hawkish policy, have raised BNB’s possibility of dropping below the 61.8 Fib line.

Related: The crypto market dropped in May, but June has a silver lining

If this happens, then BNB’s next downside target could be its 200-week exponential moving average (200-week EMA; the blue wave) near $200, down about 25% from June 7’s price.

The BNB/USD pair’s weekly relative strength index (RSI), now at 34, also shows more room to drop until the reading hits 30, an oversold level that indicates buying sentiment.

BNB/USD weekly price chart. Source: TradingView

Meanwhile, a further drop below the 200-week EMA could have BNB eye the 0.786 Fib line near $160 as its support, down by 40% from June 7’s price.

Conversely, if BNB manages to hold strong above $274, it could rebound toward the area defined by its 0.5 Fib line around $355 and its 50-week EMA (the red wave) near $380, up over 20% from the current price level.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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DeFiChain Announces the Launch of Decentralized Bridge to Connect with the BNB Chain

DeFiChain Announces the Launch of Decentralized Bridge to Connect with the BNB Chain

DeFiChain Announces the Launch of Decentralized Bridge to Connect with the BNB Chain

DeFiChain, a decentralized Proof-of-Stake blockchain created as a hard fork of the Bitcoin network to enable advanced DeFi applications, has announced the official launch of the BNB bridge. Dubbed the DeFiChain Bridge, the platform is now accessible from BNB and vice versa. Indeed, multi-chain is the future of blockchain technology. Worth noting, that DeFiChain is […]

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Axie Infinity creator raises $150M led by Binance to reimburse stolen funds

Axie Infinity creator raises $150M led by Binance to reimburse stolen funds

The developers are currently working on a security upgrade and plan to increase the number of validator groups to 21 before making the Ronin Bridge live again.

Sky Mavis, the creator of the popular play-to-earn nonfungible token game Axie Infinity has raised $150 million in a new funding round led by Binance. 

The fundraiser is aimed at reimbursing lost funds from the recent exploit on Axie Infinity’s Ronin Bridge, which resulted in the loss of over $600 million. The funding round also saw participation from Animoca Brands, a16z, Dialectic, Paradigm and Accel.

As Cointelegraph reported earlier, the explorer behind the hack managed to drain out 173,600 Ethereum (ETH) and 25.5 million USD Coin (USDC) in just two transactions using hacked private keys. At the time, the creators behind the NFT game had promised that they would either try to recover all the lost funds or reimburse users with the help of their investors.

Apart from the $150M raised funds, the remaining amount would be reimbursed from Sky Mavis and Axie Infinity’s balance sheet. The developers have also identified a small validator set on Axie DAO as being the root cause behind the exploit and have decided to increase the number of validator groups to 21 in the next three months.

The developers behind the project estimate that it could take several weeks before the Ronin Bridge becomes active again, as they are working on the security update and subsequent audits before re-opening it for users. In the meantime, Binance is helping Axie Infinity users to deposit and withdraw ETH on the Ronin Network.

Related: Axie Infinity (AXS) price reverses course with 50%+ gain ahead of Origin launch

If the stolen funds are not recovered within two years, the Axie DAO would vote for the next steps for its treasury. Binance and Sky Mavis didn’t respond to requests for comments from Cointelegraph at the time of publishing,

Many in the crypto community believed that the hacker behind the Ronin Bridge exploit would eventually return the funds, quite similar to the exploiter of the Poly Network. However, until now, there hasn’t been any evidence of such communication between the game developers and hackers.

The Axie Infinity exploiter account has started moving funds to coin mixer services such as Tornado Cash in a bid to launder the stolen funds. However, it is important to note that the Poly Network exploiter did the same, to begin with, but eventually decided to return the funds as it became increasingly difficult to launder such a high amount.

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Price analysis 4/4: BTC, ETH, BNB, SOL, XRP, ADA, LUNA, AVAX, DOT, DOGE

Price analysis 4/4: BTC, ETH, BNB, SOL, XRP, ADA, LUNA, AVAX, DOT, DOGE

BTC and altcoins are dropping to retest lower support levels and bulls have yet to buy into the current dip.

Bitcoin (BTC) has been stuck between $45,400 and $47,500 for the past two days, indicating a tough tussle between the buyers and sellers as both attempt to establish control over the trend.

Data from on-chain analytics firm Glassnode showed that 100,000 Bitcoin left exchanges in March. These large quantities of withdrawals have only happened twice in the history of Bitcoin with the largest being in March 2020. However, this does not mean the price will rally immediately. In 2020, the momentum picked up only by the fourth quarter of the year.

For the near term, analysts remain divided with some expecting Bitcoin to drop to $44,800 or even to $43,000 while others anticipate a rally to the psychological level at $50,000.

Daily cryptocurrency market performance. Source: Coin360

As the crypto markets mature, they continue to attract new investors. A report by Gemini crypto exchange highlighted that the number of users who purchased their first cryptocurrency in 2021 soared by more than 50% in India, Brazil and Hong Kong. Even Latin America, Asia Pacific, the United States and Europe witnessed over 40% more new users who started investing in 2021.

Could Bitcoin and altcoins bounce off their support and extend the recovery? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

The long wick on the candlestick of the past two days suggests that bears are selling near the 200-day simple moving average (SMA) ($48,266). A minor positive has been that the bulls have not allowed Bitcoin to break below the important support at $45,400.

BTC/USDT daily chart. Source: TradingView

However, this tight-range trading is unlikely to continue for long. If the price breaks below the 20-day exponential moving average (EMA) ($44,467), the BTC/USDT pair could drop to the 50-day SMA ($41,689). Such a move could invalidate the short-term bullish setup.

Conversely, if the price rises from the current level or the 20-day EMA, it will suggest that traders continue to buy on dips. That could enhance the prospects of a break above the 200-day SMA. If that happens, the pair could rally to $52,000.

ETH/USDT

Ether (ETH) broke and closed above the 200-day SMA ($3,487) on April 3 but the bulls could not sustain the higher levels. This suggests that the bears are trying to pull the price lower and trap the aggressive bulls.

ETH/USDT daily chart. Source: TradingView

If the price breaks below $3,411, the bears will try to pull the ETH/USDT pair to the 20-day EMA ($3,197). This is an important level for the bulls to defend if they want the positive momentum to remain intact.

If the price rebounds off the 20-day EMA, the buyers will again try to thrust and sustain the price above the 200-day SMA. If they manage to do that, the pair could rally to $4,000.

On the other hand, if the 20-day EMA support gives way, the selling could intensify and the pair may drop to the 50-day SMA ($2,895).

BNB/USDT

BNB has been trading close to the $445 level for the past few days. Although the bulls pushed the price above this level repeatedly, they could not sustain the higher levels and challenge the 200-day SMA ($467). This indicates that demand dries up at higher levels.

BNB/USDT daily chart. Source: TradingView

The bears will now try to pull the price to the 20-day EMA ($421), which is an important support to watch out for. If the price rebounds off this level, the buyers will make one more attempt to clear the overhead hurdle and push the BNB/USDT pair to $500.

Alternatively, if the price breaks below the 20-day EMA, it will suggest that the short-term traders may be booking profits. That could pull the price to the 50-day SMA. A break below this support will suggest that the break above $445 may have been a bull trap.

SOL/USDT

Solana’s (SOL) recovery stalled just below the 200-day SMA ($150). This suggests that higher levels are attracting selling by the bears. The bears will now try to pull the price to the breakout level at $122.

SOL/USDT daily chart. Source: TradingView

If the price rebounds off $122, the bulls will make another attempt to clear the overhead hurdle at the 200-day SMA. If they succeed, the SOL/USDT pair could rally toward the psychological level at $200. The rising 20-day EMA ($111) and the relative strength index (RSI) near the overbought zone indicate advantage to buyers.

Contrary to this assumption, if bears sink the price below $122, the pair could drop to the 20-day EMA. This is an important support to keep an eye on because a break below it could result in a decline to the 50-day SMA ($96).

XRP/USDT

The bulls attempted to push Ripple (XRP) above the overhead resistance at $0.86 but the bears did not budge. The failure to rise above $0.86 may attract profit-booking from short-term traders, which could sink the price to the 50-day SMA ($0.78).

XRP/USDT daily chart. Source: TradingView

If the price once again bounces off the 50-day SMA, it will suggest that bulls are accumulating on dips. That could keep the XRP/USDT pair stuck between the 50-day SMA and the 200-day SMA ($0.89) for a few days.

The flattish 20-day EMA ($0.82) and the RSI near the midpoint also suggest a consolidation in the near term.

If bears pull the price below the 50-day SMA, the pair could plummet to $0.70. Alternatively, if buyers drive the price above the 200-day SMA, the pair could rally to the psychological level at $1.

ADA/USDT

Cardano (ADA) turned up on April 1 and has reached the overhead resistance at $1.26 where the bulls are likely to encounter strong resistance from the bears.

ADA/USDT daily chart. Source: TradingView

The upsloping 20-day EMA ($1.08) and the RSI near the overbought zone indicate that the path of least resistance is to the upside. If bulls push the price above $1.26, the ADA/USDT pair could rally to the 200-day SMA ($1.48) and then to $1.63.

Conversely, if the price once again turns down from the overhead resistance, the pair could drop to the 20-day EMA. A break and close below this support could pull the price down to the psychological level at $1.

LUNA/USDT

Terra’s LUNA token broke out of the overhead resistance at $111 on April 2 and made a new all-time high at $118 on April 3. This suggests that the bulls are in the driver’s seat.

LUNA/USDT daily chart. Source: TradingView

However, the negative divergence on the RSI warns that the bullish momentum may be weakening and the LUNA/USDT pair could witness a minor correction or consolidation.

If the price slips below the 20-day EMA ($100), traders who may have bought at lower levels could book profits. That could pull the price down to the 50-day SMA ($84).

Conversely, if the price rebounds off the 20-day EMA, it will suggest that the bulls continue to defend the level aggressively. The buyers will then try to push the pair above $118. If they succeed, the pair could rise to $125 and later march toward $150.

Related: Neutrino Dollar breaks peg, falls to $0.82 amid WAVES price ‘manipulation’ accusations

AVAX/USDT

Avalanche (AVAX) repeatedly broke above the overhead resistance at $98 in the past few days but the bulls could not sustain the higher levels. This indicates that bears are defending the level with vigor.

AVAX/USDT daily chart. Source: TradingView

The bears will now try to pull the price to the 20-day EMA ($89). This is an important level to watch out for because a strong rebound off it will suggest that the sentiment remains bullish and traders are buying on dips.

That could increase the possibility of a break and close above the $98 to $100 resistance zone. If that happens, the AVAX/USDT pair could rally to $120.

Contrary to this assumption, if the price continues lower and breaks below the 20-day EMA, the next stop could be the 50-day SMA ($82). The pair could then extend its range-bound action for a few more days.

DOT/USDT

Polkadot (DOT) broke and closed above the overhead resistance at $23 on April 3 but the bulls could not sustain the higher levels. This suggests that the bears have not yet given up and are selling on every rise.

DOT/USDT daily chart. Source: TradingView

The bears are trying to sustain the price below $23 and trap the aggressive bulls who may have gone long on a breakout above the resistance. The critical level to watch on the downside is the 20-day EMA ($21).

If this support cracks, the DOT/USDT pair could drop to $19. If the price rebounds off this level, the DOT/USDT pair could remain range-bound between $19 and $23 for a few days.

Conversely, if the price turns up from the current level and breaks above $24, the pair could rally to the 200-day SMA ($29).

DOGE/USDT

Dogecoin (DOGE) rebounded off the 20-day EMA ($0.13) on April 3, indicating that the bulls continue to defend this level aggressively. The rising 20-day EMA and the RSI in the positive zone indicate an advantage to buyers.

DOGE/USDT daily chart. Source: TradingView

The buying continued on April 4 and the bulls attempted to resume the up-move toward the overhead resistance zone between $0.17 and the 200-day SMA ($0.18) but the long wick on the candlestick suggests that bears are selling at higher levels.

If the price continues lower and breaks below the 20-day EMA, it will suggest that the DOGE/USDT pair could remain range-bound between $0.10 and $0.17 for a few more days.

The bulls will have to propel and sustain the price above the 200-day SMA to signal a potential change in trend.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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Price analysis 3/30: BTC, ETH, BNB, XRP, ADA, LUNA, SOL, AVAX, DOT, DOGE

Price analysis 3/30: BTC, ETH, BNB, XRP, ADA, LUNA, SOL, AVAX, DOT, DOGE

BTC and altcoins could enter a short consolidation phase before retesting their breakout levels, a sign that the current price action could be a buying opportunity.

Bitcoin’s (BTC) rally is taking a breather near the 200-day simple moving average (SMA) and that has resulted in what is either a minor pullback or consolidation in BTC and select altcoins. 

In the last few days, Terraform Labs has been on a Bitcoin buying spree. The wallet address speculated to be that of Terra, has received $139 million worth of Bitcoin on March 30, taking its total to about $1.5 billion in BTC.

With Terra breathing down its neck, MicroStrategy seems to have taken up the challenge. The business intelligence firm’s subsidiary MacroStrategy has secured a $205 million loan from Silvergate, which will be used to purchase Bitcoin, cover general corporate expenses and pay the necessary fees and interest on the loan.

Daily cryptocurrency market performance. Source: Coin360

The buying interest is not limited to the two companies. CoinShares data showed that institutional investors pumped in $193 million into digital asset investment products last week, the largest inflow since early December 2021.

With institutional investors buying in large quantities, could Bitcoin and the major altcoins break above their overhead resistance levels? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin rose to the 200-day SMA ($48,288) on March 28 but the bulls could not push the price above it. The buyers again tried to clear the overhead hurdle on March 29 but failed.

BTC/USDT daily chart. Source: TradingView

The bears will now try to pull the price to the immediate support at $45,400. If the price rebounds off this support, the bulls will again attempt to thrust the BTC/USDT pair above the 200-day SMA. If they succeed, the pair could start its journey to $52,000.

The rising 20-day exponential moving average ($43,531) and the relative strength index (RSI) near the overbought zone indicate that bulls are in control.

This positive view will invalidate if the price turns down and plummets below the 20-day EMA. If that happens, the pair could extend its stay inside the ascending channel for a few more days.

ETH/USDT

Ether (ETH) broke and closed above the overhead resistance at $3,411 on March 29 but the bulls could not clear the obstacle at the 200-day SMA ($3,488). This indicates that bears have not yet given up and are attempting to stall the recovery at the 200-day SMA.

ETH/USDT daily chart. Source: TradingView

If the price sustains below $3,411, the bears will try to pull the ETH/USDT pair to the 20-day EMA ($3,042). A strong rebound off this level will suggest that the sentiment has turned positive and traders are buying on dips.

The bulls will then again try to propel the price above the 200-day SMA. If they succeed, the pair could rally toward $4,000.

Contrary to this assumption, if the price breaks below the 20-day EMA, it will suggest that the traders may be rushing to the exit. That could pull the pair down to the 50-day SMA ($2,853).

BNB/USDT

Binance Coin’s (BNB) tight range trading between $425 and $445 has resolved to the upside, indicating that bulls have absorbed the supply and are trying to gain the upper hand.

BNB/USDT daily chart. Source: TradingView

The upsloping 20-day EMA ($409) and the RSI in the overbought territory indicate that bulls are in control. If they sustain the price above $445, the BNB/USDT pair could rise to the 200-day SMA ($467) and later to $500.

Conversely, if the price turns down and breaks below $425, the pair could drop to the 20-day EMA. This is an important level to keep an eye on because a break and close below it will suggest that the bullish momentum has weakened. The pair could then oscillate between $350 and $445 for a few more days.

XRP/USDT

Ripple (XRP) broke above the overhead resistance at $0.91 on March 28 but the bears did not allow the price to sustain the higher levels. This indicates that the bears are aggressively defending the zone between $0.91 and $1.

XRP/USDT daily chart. Source: TradingView

The bulls are attempting to sustain the price above $0.86. If they succeed, the XRP/USDT pair could again rise to $0.91. A break and close above this level could open the doors for a possible rally to the psychological level at $1.

Conversely, if the price sustains below $0.86, the bears will attempt to pull the pair below the moving averages. If they manage to do that, it will suggest that the bullish momentum has weakened. The pair could then drop to $0.70.

ADA/USDT

Cardano (ADA) is facing resistance at $1.26 as seen from the long wick on the candlestick on March 28 and 29. A minor positive is that the bulls have not given up much ground.

ADA/USDT daily chart. Source: TradingView

The upsloping 20-day EMA ($1) and the RSI in the overbought territory indicate that the path of least resistance is to the upside. If buyers propel and sustain the price above $1.26, the ADA/USDT pair could rise to the 200-day SMA ($1.51) and thereafter rally to $1.60.

Alternatively, if the price turns down from the current level and breaks below $1.15, the bears will try to pull the pair to the 20-day EMA. This is an important level to watch out for because a break and close below it could sink the pair to $0.74.

LUNA/USDT

Terra’s LUNA token broke and closed above the overhead resistance at $96 on March 28. Although the long wick on the day’s candlestick showed selling near $100, the bulls did not allow the price to break back below $96.

LUNA/USDT daily chart. Source: TradingView

The buying resumed on March 29 and the bulls thrust the price above the all-time high at $105. If bulls sustain the price above $105, the buying momentum could pick up and the LUNA/USDT pair may rally to $115 and later to $125.

A minor negative is that the RSI is showing signs of forming a negative divergence. If the price breaks and sustains below $105, the pair could drop to $96. This is an important support for the bulls to defend because a break and close below it could aggravate selling. The pair could then drop to the 50-day SMA ($78).

SOL/USDT

After sustaining above $106 for the past two days, Solana (SOL) has risen above the overhead resistance at $122, indicating strong buying by the bulls.

SOL/USDT daily chart. Source: TradingView

If buyers sustain the price above $122, the SOL/USDT pair could start a new uptrend, which could reach the 200-day SMA ($150). This level is likely to act as a stiff resistance but if bulls overcome it, the rally could reach $180.

Contrary to this assumption, if the price turns down from the current level and breaks below $106, it will suggest that the break above $122 may have been a bull trap. The pair could then drop to the moving averages and remain stuck between $81 and $122 for a few more days.

Related: Bitcoin sentiment hits ‘greed’ in 2022 first amid calls for $45K BTC price pullback

AVAX/USDT

The long wick on the candlestick of the past two days shows that bears are defending the level at $98. However, a minor positive is that the bulls have not allowed Avalanche (AVAX) to drop to the 20-day EMA ($85). This suggests that the traders are in no hurry to exit their positions.

AVAX/USDT daily chart. Source: TradingView

The rising 20-day EMA and the RSI in the positive territory indicate that bulls are in control. If buyers thrust the price above the $98 to $100 resistance zone, the AVAX/USDT pair could pick up momentum and rally to $120.

This positive view will invalidate in the short term if bears sink and sustain the price below the 50-day SMA ($81). Such a move will suggest that the pair could extend its stay inside the $65 to $98 range for a few more days.

DOT/USDT

Polkadot (DOT) has been facing stiff resistance at $23 for the past three days but a positive sign is that the bulls have not ceded ground to the bears. This suggests that the bulls expect a break above the overhead resistance.

DOT/USDT daily chart. Source: TradingView

The 20-day EMA ($20) is sloping up and the RSI is in the positive zone, indicating that the path of least resistance is to the upside. If bulls drive and sustain the price above $23, the DOT/USDT pair could pick up momentum and rally to the 200-day SMA ($29).

Contrary to this assumption, if the price turns down from the current level and breaks below the 20-day EMA, it will suggest that the bullish momentum may have weakened. That could keep the pair range-bound between $16 and $23 for the next few days.

DOGE/USDT

Dogecoin (DOGE) rose above $0.15 on March 28 but the long wick on the day’s candlestick suggests that bears are selling at higher levels.

DOGE/USDT daily chart. Source: TradingView

The moving averages have completed a bullish crossover and the RSI is in the positive territory, indicating that bulls have the upper hand. If the price turns up from the current level and breaks above $0.15, the DOGE/USDT pair could rally to the overhead resistance at $0.17 where the bears may again mount a strong defense.

Contrary to this assumption, if the price continues lower and breaks below the moving averages, it will suggest that the pair may spend some more time inside the range between $0.17 and $0.10.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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