Possible indictment against Binance causes course correction

Despite a significant increase in new customers on the crypto exchange Binance.com since the insolvency of the competitor FTX, the course of the in-house Binance Coin (BNB) has not been able to benefit from this in the long term. Although the BNB price briefly shot to a new multi-month high of USD 398 on Tuesday, November 8, it was unable to maintain this price level. Most recently, the Binance Coin failed several times at the resistance at USD 318 at the end of November. Yesterday’s bad news about possible criminal investigations by the US authorities against the world’s largest crypto exchange sent the price of BNB down more than five percentage points in the last 24 trading hours to a new monthly low of USD 256.

However, the BNB price is currently trading at USD 266, four percentage points above the daily low. After the publication of the new US inflation data this Tuesday afternoon, investors must also keep an eye on the Fed meeting of the US Federal Reserve on Wednesday evening (8:00 p.m. CET) as well as the development around Binance.com.

If the BNB price breaks below the important support at USD 250 as a result of persistently high inflation rates and further key interest rate adjustments, there is a risk of new price losses in the direction of USD 243 and below. Only a recapture of the cross-resistance at USD 291 would brighten the chart for BNB in ​​the short term.

New upside potential only to be expected above USD 318

• Bullish price targets: $277, $291, $304, $318, $338, $356, $384, $398, $416/435, $455, $481, $511

BNB: Bullish price targets for the coming weeks

For a first liberation, the buyer camp must first try to recapture the resistance at USD 277. Only when this price level is breached dynamically does the multiple resist from EMA50 (orange) and the horizontal resistance line at USD 291 come back into focus. In view of the recent uncertainties surrounding Binance.com, increased profit-taking can already be expected here. If the BNB price can also overcome this price mark, the next technical chart hurdle is already waiting in the USD 304 area.

In addition to the 38 Fibonacci retracement, the EMA200 (blue) also runs here. It should therefore be difficult for the bulls to break through this cross resist at the first attempt. If, contrary to expectations, a leap back above this price level succeeds, the interim high at USD 318 will again attract the attention of investors. Whether the Binance Coin can regain this price level in a timely manner should also depend on the development of the classic stock market and the Bitcoin price.

A year-end rally would help the buy side

If a year-end rally starts in the coming weeks and the financial markets show their bullish side, a subsequent increase in the BNB rate up to USD 338 would be conceivable. If this price level is also subsequently pulverized, the next target area between USD 356 and USD 360 will be activated. Again, profit-taking is to be planned here. However, if the bulls manage to clear this area as well, the November high at $398 will come back into focus. At this point at the latest, the course of the Binance coin should bounce off more clearly to the south.

Should there be a sustained, broad-based recovery on the entire financial market in the first few months of the new 2023 calendar year and the BTC price can rise back above the psychologically important USD 20,000 mark, the price of the BNB coin will also rise to the higher-ranking golden -Pocket between $416 and $435 not excluded. This would put the maximum price target in the area of ​​the historical high from April 2022 at USD 455 within reach again. For the time being, however, a price increase in this chart region seems doubtful, too many uncertainties are likely to limit such a bullish development.

• Bearish price targets: $262/$256, $243, $219, $211, $189/, $165, $147, $124, $106, $73

BNB: Bearish price targets for the coming weeks

The negative news surrounding a possible lawsuit against Binance and its CEO Changpeng Zhao (CZ) has had a bearish effect on the Binance Coin price in the last 24 hours of trading. After calming down in the previous weeks, there seems to be increased uncertainty among investors again. This is expressed according to one Tweet from Nansen.ai also in the highest outflow of Ethereum and ERC-20 tokens totaling more than $2 billion since June this year. If the BNB rate slips below the support at USD 262 at the end of the day tomorrow, Wednesday, as a result of higher than expected US inflation rates and key interest rate adjustments by the Fed and thus also abandons the super trend, there is a risk of a relapse to around USD 251. Important technical support can be found here with the low of November 21 and the 23 Fibonacci retracement. The bulls must do everything in their power to defend this support level.

If the BNB price also dynamically breaks through this price level, the Binance Coin, stopping at USD 243, should promptly correct towards USD 219. It is only here that increased resistance on the part of the buyer is to be planned again. If there is no sustained reversal at this support either, a sell-off down to the yellow support zone is likely. Below USD 214, the corrective movement immediately extends to the horizontal support level at USD 198. If this price level does not hold either, investors will immediately focus on the annual low of USD 183 as a target. In the first attempt, a price bounce back towards USD 219 is to be expected. However, if the BNB price cannot regain this price mark and is trending south again, lower price levels are also conceivable in the medium term.

New annual lows are coming into view

If the low of USD 183 is dynamically broken through, the bears will do everything possible to sell the BNB price, stopping at USD 165, down to the green support area between USD 148 and USD 124. The Binance Coin started its bullish price rally in February 2021 in this zone. If accusations against the crypto exchange are also confirmed and the BNB price falls back below USD 124, a further sell-off to USD 106 can be expected. In perspective, an extension of the correction to the next important support at USD 73 would then no longer be ruled out. From the current perspective, this support level represents the maximum bearish price target for the coming months.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 0.95.