Today is a day that many in the cryptocurrency industry have been dreading. Binance’s ban on US customers officially goes into effect and all eyes are fixed on how it will play out. The exchange’s own Binance Coin (BNB) has expectedly crashed as a result and will probably drop even lower.
Binance Coin (BNB) is, by all standards, wrecked in the short-term. The cryptocurrency has been dropping steadily since its all-time high in June of this year when it topped broke the $42 mark. Now, it is currently barely maintaining itself above the $20 price point, a major support level.
BNB Taking a Dive
Noted cryptocurrency trader BenjaminBlunts (@SmartContracter) has been following BNB closely for the past few days, calling the local top at $23 on Sept 6. Since then, BNB has continued its spectacular decline, and his call now is that we could see BNB as low as $19.25.
BNB update: REKT X 2 pic.twitter.com/dQAEUKrgNU
— 🍄🌲BenjaminBlunts🌲🍄 (@SmartContracter) September 12, 2019
Investors in BNB could possibly see a relief rally to $21 in the short-term, but it is unlikely to last long.
Since June, BNB has been slowly bleeding each day. It often does not post double-digit losses, but it has been on a downward trend since at least July. It’s dangerous to catch a falling knife so traders should probably stay away until Binance US fully proves itself and there is some stability regained.
Falling on Hard Times
Considering that such a significant portion of Binance’s traffic comes from the United States, many altcoins are plummeting due to their unavailability on the new American branch. IEOs previously held on Binance like Harmony (ONE) and Matic Network (MATIC) have been hit particularly hard, due to high on-exchange liquidity applying heavy downward pressure on their prices. However, BNB’s declining price is a clear indicator that investors are still unsure about the prospects of Binance USA, perhaps irrationally.
Regardless, Binance Coin (BNB) seems to have more pain in store for it as it approaches the $20 price point. If this support level breaks, it’s anybody’s guess where it will end.
Do you think that the $20 support level for BNB might hold? Let us know your thoughts below in the comments.
Images courtesy of Shutterstock, Twitter.