Binance Coin loses 6% in Sunday trading over continued regulatory fears connected to Binance Exchange’s recent equity-linked listings.
Not content with being the world’s largest cryptocurrency exchange. Binance has now set its sights on democratizing equities trading. Earlier this month, the exchange announced two new coins that would be directly linked to the share prices of Tesla (TSLA) and rival exchange Coinbase (COIN).
The products, which track the underlying share price, aim to allow users to trade tokens that represent U.S listed shares for a fractional price of the stock. European regulators are now to decide if the new listings comply with local regulations.
In a statement to the financial times, the U.K’s FCA said that it is “working with the firm to understand the product, the regulations that may apply to it and how it is marketed”.
Binance Coin, native to the exchange, is used to pay for Binance’s trading and withdrawal fees. Buoyed by renewed investor interest in Cryptocurrencies in 2021, the price of Binance coin increased in value by 1,170% in the first 4 months of the year.
This increase saw Binance Coin rise to the rank of the world’s third-largest cryptocurrency. The current market cap stands at $75 billion, according to CoinMarketCap.
Binance coin, like many of its peers, has retreated substantially from its 2021 highs. and now trades 18% lower than the April peak. As of writing, we are trading lower by 6.9% on the day, at $486.50.
The double-top formation on the Daily chart signals a reversal of fortunes for Binance Coin’s price outlook. A failure to break new highs on the second attempt leads me to the conclusion that the market may have a lot more room on the downside.
During the recent turbulence, the price has yet to close below $481. Should this occur, the next levels to look for are $449 (23rd April low) and $428 (19th April low). A deeper sell-off targets the ascending trend line at $348.
Follow Elliott on Twitter
