The Binance Coin price is not looking good. BNB is trading at $432, which is more than 37% below its all-time high of almost $700. It is its lowest level since April 18 this year. The coin’s market cap has also dropped to more than $62 billion.
What happened: Binance Coin is the native currency of the Binance Chain ecosystem. For starters, this Binance Chain is similar to Ethereum in that it helps people build their decentralized applications. Some of the best-known apps built using the technology are Binance USD, PancakeSwap, Ontology, and The Graph, among others. The BNB is also widely used across the Binance ecosystem.
The BNB price is sling today as the strong correlation of cryptocurrencies continues. This means that, in most cases, the prices of most cryptocurrencies move in the same direction. Today, Bitcoin has dropped to $40,000, which is substantially lower than its all-time high of almost $65,000. In the same period, most currencies like Ethereum, Cardano, and Polkadot have all slumped by more than 30%.
Today, the main reason is a warning by top Chinese regulators and business groups who warned the public against cryptocurrencies. They said:
“Recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”
The four-hour chart of the BNB price does not look good for bulls. For one, the decline was relatively easy to predict since the currency formed a rising wedge pattern that is shown in black. In price action analysis, a rising wedge pattern is usually a bearish thing.
The coin has also moved below the 50% Fibonacci retracement level and is approaching the 61.8% level. It is also below the short and longer-term moving averages. Therefore, the pair may keep falling as bears target the 61.8% retracement level at$400. However, a move above the psychological level of $500 will invalidate this prediction.
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