- Binance Coin (BNB) rose by 2.59% on Friday, partially reversing a 9.97% slump on Thursday.
- The upside was modest, with BNB and the broader crypto market in the deep red for the current week.
- Technical indicators are bearish, with BNB sitting well below the 50-day EMA.
It is a tough week for Binance Coin (BNB) and the broader crypto market. On Friday, BNB rose by 2.59%. Partially reversing a 9.97% slide on Thursday, BNB ended the day at $215.46.
The upside on Friday was of little consolation for the bulls, with BNB down 15% Monday through Friday.
Investor sentiment toward Fed monetary policy and fears of a global recession weighed heavily on the appetite for riskier assets.
BNB Under Intense Selling Pressure as Crypto Winter Bites Deeper
Selling pressure resumed today, with investors having little to celebrate following Friday’s modest gains.
Crypto exchanges and their native tokens remain at risk of significant losses, with the June sell-off coinciding with the Fed’s interest rate projections and the threat of an economic recession.
Some crypto exchanges are better off than others, however. While Binance continues to face intense regulatory scrutiny in several jurisdictions, Binance sits well placed to find opportunities amidst the market turmoil.
This week, Binance announced 2,000 open positions while other crypto platforms cut payrolls.
For BNB, however, much will depend on the outcome of a new SEC investigation into Binance.
Early this month, FX Empire reported news of the SEC investigating whether BNB was a security when sold in 2017.
With the SEC v Ripple case ongoing, the issue of cryptos and securities remains unresolved, which continues to impact the US crypto market.
Following news of the SEC investigation, Binance also got hit with an investor group class action suit on Monday, June 13.
The investor group alleges that Binance illegally sold unregistered securities UST and LUNA.
Investor group class action suits are on the rise as investors suffer heavy losses. The LUNA and UST collapse and stablecoin issues have exasperated the situation.
Binance Coin (BNB) Price Action
At the time of writing, BNB was down 8.47% to $199.54.
A mixed start to the day saw BNB rise to an early morning high of $218.72 before falling to a low of $196.14.
BNB fell through the First Major Support Level at $208 and the Second Major Support Level at $201 to a new current year low.
Steering clear of sub-$190 was the only consolation through the morning session as selling momentum gathered pace.
BNB will need to move through the Major Support Levels and the $215 pivot to target the First Major Resistance Level at $222.
BNB would need broader crypto market support to return to $210 levels.
Failure to move through the Major Support Levels and the pivot would test support at $190. Barring an extended sell-off throughout the afternoon session, BNB should avoid the Third Major Support Level sitting at $187.
Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bearish signal. BNB sits below the 50-day EMA, currently at $235. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; price negative.
A return to $220 would bring the 50-day EMA into play.