The Binance Coin ($BNB) price has fallen by over 8% in the past 7 days and 23% in a month as a strong bearish sentiment grips the crypto market.
$BNB has been one of the coins that have been hardest hit by this sentiment, ending in the red during five of the last six weeks. This comes as the SEC’s lawsuit filed against Binance that also laballed numerous cryptos, including BNB, as securities.
However, with $BNB now trading below yearly lows, many investors are pondering: Is now a good time to buy the dip? Let’s take a look at Binance Coin’s prospects to help you decide.
Crippling Impact of the SEC Lawsuit on Binance Coin Price
$BNB has been stuck in a downtrend since April 17 – yet the coin’s woes have gathered steam in the past ten days following massive news from the US Securities and Exchange Commission (SEC).
On June 5, the SEC sued Binance, the world’s largest crypto exchange, in an event that shook the entire market to its core.
The crux of this lawsuit involves the SEC’s belief that Binance violated US securities laws by operating an unregistered securities exchange and failing to register as a broker-dealer.
Not only that, but the SEC also alleges that Changpeng Zhao, Binance’s CEO, was liable for the exchange’s violations.
Naturally, this enormous news event had wide-reaching ramifications for the crypto market since it is viewed as a significant development in the SEC’s enforcement of crypto regulation.
However, given that $BNB was created by Binance and plays a vital role in paying trading fees and participating in the Binance Launchpad feature, it suffered even more severe consequences than other cryptocurrencies.
Due to the uncertainty surrounding Binance’s operations in the US, it appears that many traders and investors are opting to offload their $BNB holdings – pushing the coin’s price lower.
Moreover, the ongoing SEC lawsuit could lead to regulatory changes that affect $BNB’s utility, adding to investors’ fears.
Grim Technical Indicators Signal More Turmoil for $BNB
From a technical perspective, things don’t look like they will be getting much better for $BNB in the short term.
The coin’s price has fallen over 23% during the past ten days and is now down 4% year-to-date (YTD).
Even more worrying for $BNB bulls is that price re-tested $246 as resistance, which is the price the coin began the year at. After this re-test, $BNB immediately fell downwards – setting the stage for bears to strengthen their grip.
Price is also trading well below the 20-day and 50-day Exponential Moving Averages (EMAs), highlighting that the short-term and medium-term trends are highly bearish.
Data from CoinGlass reveals that $BNB trading volumes across all major exchanges has plummeted in the past 24 hours – with volume falling over 31% on Binance alone.
Also, the $BNB futures open interest has risen significantly in the past two days. This indicates that more futures contracts are being opened by speculative traders – which may mean some investors are hedging against further downside momentum.
Putting all these factors together paints a bleak picture for $BNB, with the likely port of call being the nearby support level at $220.
If $BNB fell to this level, it would represent another 5% drop, based on today’s price.
This bearish hypothesis is backed up by prominent YouTube analyst More Crypto Online, who boasts over 135,000 subscribers.
More Crypto Online recently released a video speculating that $BNB could fall all the way to the $200 level, if this current momentum continues.
Sophie Roots, a crypto analyst working for Changelly, also wrote an article discussing Binance Coin’s prospects – estimating that the coin could even drop to as low as $188.99 by November this year.
Which Coins Are Traders Considering Instead of $BNB?
With $BNB’s woes showing no signs of abating, traders are focusing on other cryptocurrencies that offer more stability and potential upside.
Coins such as Wall Street Memes ($WSM) and Ecoterra ($ECOTERRA) have been receiving more attention – and look set to continue gaining traction in the coming weeks.
Wall Street Memes Becomes Instant Hit with Investors & Raises $7.1 Million
Wall Street Memes ($WSM) is a brand-new meme coin that seeks to empower lovers of meme culture and reward those who participate in the project’s community.
The Wall Street Memes community has roots that extend back to 2021, thanks to the enormous success of the Wall St Bulls NFT collection – which sold out in 32 minutes and raised a staggering $2.5 million.
Since then, the community has grown exponentially and now comprises over 1.1 million “degens,” drawing inspiration from the super-popular WallStreetBets subreddit.
Now, the brains behind this community are looking to give back by launching $WSM – a meme coin designed to provide holders with exposure to the community’s growth.
The total supply of $WSM will be capped at two billion, with 30% reserved for community rewards and 20% used for CEX/DEX liquidity.
Although $WSM hasn’t yet made its exchange debut, the token’s presale has been an instant success, raising $7.1 million in just a few weeks.
With $WSM tokens priced at just $0.0289, there’s a clear appeal for investors seeking potential high-growth assets – which is why the token has emerged as a viable alternative to $BNB.
Ecoterra ($ECOTERRA) is another cryptocurrency that traders are turning to instead of $BNB.
As its name implies, Ecoterra is an eco-friendly blockchain project that aims to promote more sustainable behaviors from individuals and businesses worldwide.
Ecoterra’s team has created an all-in-one Recycle2Earn app that allows users to earn $ECOTERRA tokens for recycling used materials like glass, cardboard, and plastic.
The platform will also boast marketplaces for recycled materials and carbon offsets, making it simple for users to reduce their carbon footprint through environmentally-friendly actions.
Ecoterra will even have a public and trackable profile for all users, showcasing their sustainable actions and achievements.
Per Ecoterra’s whitepaper, the development team plans to list $ECOTERRA on crypto exchanges later this year, allowing investors to gain exposure to the platform’s growth.However, Ecoterra has already garnered huge attention from investors, raising $5.1 million through its ongoing presale – with many expecting it to rival $BNB once it makes its market debut.
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