- The BNB Coin price has made a bearish breakout.
- The SEC launched an investigation into its origins.
The BNB price declined to the lowest level since May 14th after the Securities and Exchange Commission (SEC) launched a new investigation into Binance. The coin dropped to a low of $276, which is about 18% below the highest level this week. It is about 60% below its all-time high, bringing its total market cap to about $44 billion, making it the 5th biggest cryptocurrency in the world.
SEC investigation on Binance
Binance is the biggest company in the cryptocurrency industry. The company provides a number of services, including a crypto exchange and a derivatives platform. It has almost 100 million users from around the world.
Binance also created the BNB Chain, which was formerly known as the Binance Smart Chain. It is a smart contract platform that allows developers to build decentralized applications (dApps) in all industries like DeFi and Non-Fungible Tokens (NFT).
BNB Chain is powered by the BNB Coin, which has grown to become the fifth-biggest cryptocurrency in the world after Bitcoin, Ethereum, Tether, and USD Coin. This coin is used to provide governance in the chain and to facilitate transactions in Binance.
Learn more about how to buy BNB.
The BNB Chain has been used to build some of the most popular blockchain projects. For example, it was used to build Binance USD, which is the third-biggest stablecoin with a market cap of over $18 billion. Other popular apps built in the BNB Chain are PancakeSwap, Venus, and Alpaca Finance. These apps have a total value locked (TVL) of over $8 billion.
The BNB price is falling after the SEC launched an investigation to how Binance sold tokens when it was starting. The regulators want to know the origin of the BNP token and whether it should have been registered by the SEC.
In theory, this investigation should not be seen as being negative for BNB price. Besides, investigations tend to take months and even years. Also, it is not clear whether the regulator will file charges. Most importantly, as we have seen in the Ripple case, a coin can do well during the investigation.
BNB Coin price prediction
The daily chart shows that the BNB price has been in a strong bearish trend in the past few months. After attempting to recover recently, the coin found a strong resistance at $322. Now, it has moved below the important support at $300. It has also fallen below the 25-day and 50-day moving averages while the MACD has moved below the neutral point.
Therefore, for now, the BNB coin price will likely have a bearish breakout as bears target the key support at $211, which was the lowest level in May.
