Troubled Binance takes a toll on BNBUSD

28 nov 2023

The recent turmoil engulfing Binance, the world's largest crypto exchange, has cast a shadow over its proprietary cryptocurrency, Binance Coin (BNBUSD). The upheaval was triggered by the unexpected resignation of Changpeng Zhao amid his confession to criminal wrongdoing (facilitating money laundering) and the announcement of a hefty fine for the exchange, amounting to $4.3 billion. These developments resulted in a nearly 20% drop in the value of BNBUSD (in a matter of less than a week). With RSI, Stochastic, and MACD all turning increasingly bearish on the daily time frame, the situation does not look like it will improve anytime soon. Therefore, to further bolster a bearish case, we would like to see the mentioned technicals continue to decline and BNBUSD break below Support 1; without any significant support below this level, we think there is a good chance for BNBUSD to drift toward $200 (after a breakout). Consequently, we will monitor the situation in the following days and update our thoughts on the asset once new developments arise.

Illustration 1.01

Illustration 1.01 portrays the daily chart of MACD that is crossing below the midpoint, strengthening a bearish case going forward.

Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for an individual investor to take any trade action. Therefore, your own due diligence is highly advised before entering a trade.