Binance Coin (BNB) has weakened more than 20% since June 07, 2024, falling from $724.7 to a low of $574.7. The current price of BNB stands at $585, and the risk of further decline is still not over.
The broader cryptocurrency market has experienced a correction in the last two weeks and a bearish trend in the overall market often leads to declines in individual cryptocurrencies, including BNB (review).
Macroeconomic factors and geopolitical events can also affect the cryptocurrency market and investors might seek safer assets during uncertain times, leading to a decrease in demand for riskier assets like BNB. So where is the price of BNB going next, and what can we expect from July 2024?
Today, Crypto Lists will discuss BNB price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Legal uncertainties continue to worry investors
Binance Coin is the exchange token of the Binance crypto exchange that was launched on the Ethereum blockchain but later migrated to the Binance Smart Chain, now called BNB Chain. BNB has many other purposes within the Binance ecosystem and has been integrated into various applications and services. It’s implementing a series of measures, including the reduction of trading fees on the Binance exchange, covering transaction fees on both the BNB Beacon Chain and BNB Smart Chain, and finding applications in games and decentralized applications (DApps) within the BNB Chain ecosystem.
BNB has weakened from its recent highs and if BNB fails to maintain key support levels at $550, it could signal further declines. A bearish trend in the overall market often leads to the decline of BNB but it is also important to say that legal uncertainties that surround the crypto market continue to worry investors. Binance has already faced regulatory scrutiny and actions from multiple countries and ongoing legal battles or potential new regulations targeting cryptocurrency exchanges could lead to further uncertainty and volatility in the price of BNB.
Ripple effect: CZ’s legal troubles
In 2023, the U.S. Department of Justice (DOJ) announced indictments against former Binance CEO Changpeng Zhao (CZ) and Binance for allegedly violating sanctions and money laundering laws. Zhao, who was CEO at the time, entered into a plea deal with U.S. prosecutors. CZ pleaded guilty to violating the Bank Secrecy Act and agreed to resign from his leadership role at Binance. He was succeeded by the current CEO, Richard Teng.
The settlement included fines of $50 million for the former CEO and a significant $4.3 billion fine for Binance. Furthermore, the DOJ appointed the Forensic Risk Alliance, an independent consulting firm, to serve as a monitor for Binance over the next three years. On April 30, U.S. federal judge Richard Jones sentenced Zhao to four months in prison, a far cry from the three years recommended by U.S. prosecutors for Zhao’s alleged involvement in evading sanctions and facilitating money laundering.
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Release date: July 29, 2017
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Investor sentiment has worsened again
BNB has been enjoying a bull run that more than doubled the price of this crypto from lows of around $290 in January 2024 to a high of $724.7 that was reached on June 07. However, investor sentiment in the cryptocurrency market has worsened after Bitcoin (BTC) fell below the $65,000 level, causing assets across the crypto space to lose their footing and according to crypto analysts, this can be attributed to macroeconomic factors.
The Federal Reserve projected this month only one rate cut for this year, fewer than previously forecasted which dampened investor hopes for a looser monetary policy this summer despite softer inflation data. At the same time, political uncertainty in Europe, especially the snap election in France, strengthened the US dollar which rose to its highest level in over a month, adding more selling pressure on riskier assets like cryptocurrencies. During periods of a strengthening dollar, investors are usually drawn to higher yields or lower volatility in dollar-denominated assets, making them more attractive than riskier options like BNB.
Crypto analysts outlined two potential scenarios for BNB in the upcoming weeks and they said that if the price advances above $600, the positive trend could continue. On the other side, crypto analysts warned that breaking through the $550 support level could lead to further declines and that they would not be surprised to see BNB below $500 then. Crypto analysts also agree that BNB is unpredictable and a highly risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency.
Technical analysis for BNB
BNB has weakened from $724.7 to $574.7 since June 07, 2024, and the current price stands at $585. BNB might have a hard time holding above the $550 level in the upcoming days, and a break below this level would indicate that BNB could test the price level at $500.
Important support & resistance levels for BNB
On this chart (the period from January 2024), I marked important support and resistance levels that can help traders understand where the price could move. BNB currently remains under pressure, but if the price advances above $650, the next target could be an important resistance level at $700. The strong support level is $550, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $500. If the price drops below $500, which also represents an important support level, the next target could be located around $400.
What speaks for the rise in the BNB price
General market sentiment is an important factor that influences BNB’s price but positive news, partnerships, and developments related to Binance and BNB can attract investors and traders, pushing the price up. Analysts and traders often closely watch the activity of crypto whales because the behavior of crypto whales can influence market sentiment and an increase in the number of big transactions for BNB is something that could drive the price higher. When a whale makes a substantial buy, it can be seen as a bullish sign, potentially attracting more buyers.
What indicates a downfall for BNB
BNB has weakened from its recent highs and if BNB fails to maintain key support levels at $550, it could signal further declines. Investors must bear in mind that cryptocurrency markets are renowned for their extreme volatility. Therefore, investing in cryptocurrencies should be approached with careful consideration. Conducting thorough research and assessing one’s risk tolerance are essential steps before making any investments in this space.
The downfall of BNB can be influenced by a wide range of factors, including negative rumors, market sentiment, regulatory developments, technological advancements, and macroeconomic trends. BNB is unpredictable and a highly risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency.
What do analysts and experts say?
BNB has experienced significant declines since June 07, 2024, and crypto analysts agree that the price direction will largely depend on macroeconomic factors and shifts in investor sentiment. The Federal Reserve projected on Wednesday only one rate cut for this year while the political uncertainty in Europe, especially the snap election in France, further strengthened the US dollar which rose to its highest level in over a month and added more selling pressure on many cryptocurrencies including BNB. Crypto analysts also said that positive regulatory developments and the ability of Binance to navigate regulatory challenges effectively can boost investor confidence, leading to an increase in BNB’s price.
Crypto analysts outlined two potential scenarios for BNB in the upcoming weeks and they said that if the price advances above $600, the positive trend could continue. On the other side, crypto analysts warned that breaking through the $550 support level could lead to further declines and that they would not be surprised to see BNB below $500 then.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.
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