BNB (BNB) looks set to wipe out its March gains entirely as investors turn their attention to the latest regulatory crackdown on Binance, the world’s leading crypto exchange by volume.
BNB price posts worst daily performance in over a month
On March 27, the US Commodity Futures Trading Commission sued Binance and its CEO, Changpeng Zhao (CZ), alleging that the company illegally offered crypto derivatives services to Americans and facilitated illicit financial activities. .
BNB fell more than 5.5% to $305 on the day of the announcement, posting its worst daily performance since February 13, when its price fell more than 5.8% due to another regulatory crackdown involving the branded stablecoin. Binance, BUSD.
The BNB price stabilized on March 28, swinging between gains and losses as CZ refuted the CFTC’s allegations. However, the BNB/USD pair was at risk of falling further considering its recent response to regulatory actions.
For example, the New York regulator’s February 2023 crackdown on BUSD preceded a BNB price decline of more than 15%.
Similarly, BNB plunged as much as 10.75% after the Dutch Central Bank fined Binance $3.4 million in July 2022 for offering unlicensed crypto services. It also fell 25% in February 2022 after Binance halted its operations in Israel for fear of a crackdown.
Ongoing Rising Wedge Breakout
The Binance-CFTC FUD has triggered a previously covered bearish reversal setup in February.
Related: Here’s How Binance Is Mitigating Its Stablecoin Needs After BUSD Ban
This setup implies a rising wedge pattern whose breakdown could lead to a 25% price correction towards $250 by the end of March. The March banking crisis and its positive impact on high-ranking crypto assets may have delayed the bearish call.
Simultaneously, BNB anticipates a prolonged price slide towards $200 due to the formation of another rising wedge pattern on the daily chart, as shown below.
Therefore, the BNB price could drop as much as 30% in April if measured from current price levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
