Binance Coin plummeted to a low of $272.6, the lowest level since March 11th, after the US SEC filed a significant lawsuit against Binance and its CEO. The price drop has amounted to more than 20% since its highest peak this year.
The SEC lawsuit is one of the most impactful cases in the cryptocurrency industry and has caused a huge drop for Binance Coin and other cryptocurrencies. The agency sued Binance, alleging that it had defrauded customers and offered regulated products to American clients without following the law.
Following a big announcement like this, it is unsurprising for cryptocurrencies to underperform. We have seen most of these currencies fall after the collapse of FTX and its ecosystem, with XRP and other coins experiencing a drop after the SEC filed a lawsuit against Ripple.
There are also concerns about the state of regulations in the industry, as the US has resorted to enforcement actions rather than engaging with the crypto industry. Analysts predict that the agency will continue to take a hard stance against companies in the digital currency industry, even after the FTX collapse.
However, this does not mean that the price of BNB coin will continue to fall. Data from DeFi Llama shows that Binance had over $1.47 billion in outflows in the last 24 hours. While this is a significant amount, the company still has assets worth over $51 billion.
Furthermore, many investors tend to buy the dip of cryptocurrencies after significant events. For example, most coins have surged in value this year despite the FTX collapse.
On the daily chart, the Binance Coin price has been in a slow downtrend for the past few days. This selling intensified after the SEC lawsuit was filed, causing the coin to fall below the crucial support mark of $298.4, the lowest level on May 12th. The coin fell below all moving averages and is slightly above the key level of $265.6. Therefore, it is predicted that the coin will stay under pressure this week and then recover when the lawsuit subsides. As we have seen with XRP, a coin can rise regardless of the lawsuit. The initial level to watch will be at $265.
For those interested in buying Binance Coin, there are two popular options available: eToro and Binance. eToro is a social investment broker that offers over 75 different cryptocurrencies for investment, including Binance Coin. Meanwhile, Binance is one of the largest cryptocurrency exchanges in the world, offering over 600 different cryptocurrencies to trade. For investors with more experience, Binance is well-known for its low trading fees and multiple trading options, including margin and spot trading.
In conclusion, while the SEC lawsuit has caused a significant drop in the price of Binance Coin, it does not necessarily mean that the price will continue to fall. Investors can take advantage of buying the dip and choose between two popular options, eToro and Binance, for purchasing Binance Coin.
