Binance Coin was slightly lower on the week with a loss of around 1.5%. The coin is still vulnerable near the all-time highs due to Bitcoin’s sluggish price action above $65k.
BNB is still the third-largest cryptocurrency by market cap due to the growth in new users and its requirement as the funding currency for many pairs on Pancake Swap.
A bout of weakness this year was driven by the plunge in BTC in May, while a second was caused by UK and Japanese regulators. This is the key risk for BNB as regulators have shown that they are unhappy with some of the project’s practices and could be targeted further in the future.
The project’s co-founder, Yi He, said that there was no long-term future for meme coins:
Ms. He said that “These began for fun. I don’t think it’s a long-term situation.”
The SEC Chair Gary Gensler also said previously that there is not a long-term future for “4-5,000 different types of money”. There are hundreds of meme coins appearing as alternatives to Dogecoin and Shiba Inu with the potential for a crackdown in the future. The US House has also submitted guidance for taxation on cryptocurrency, while the EU wants regulation by year-end.
The price of Binance Coin is trading near its all-time high near $700 and that may be a concern as BTC is struggling to hold recent gains above $66k. The potential is there for a ‘whale’ investor to take profits and for BNB that could see the coin dragged lower. A move towards the moving average at $580 would be possible with $500 being the September high and another support area.
This post was last modified on Nov 15, 2021, 14:34 GMT 14:34