Key Takeaways:
- Binance coin inched 1% lower on Oct 17.
- The token could drop another 17% due to a technical setup.
- Binance.US withdrawal policy update partially triggered the bearish expectations.
YEREVAN (CoinChapter.com) — Cryptocurrency exchange Binance’s coin (BNB) dropped 1% to $212 on Oct. 17, ending a 7% bullish move recorded in the previous four days. Moreover, the technicals suggest another 17% drop ahead, based on a bearish setup.
BNB in a descending triangle
Binance coin has traded within the “descending triangle” formation since Aug 19. The triangle has a flat support line and a descending resistance that gradually lowers the price swing.
The bearish continuation setup predicts a drop equal to the maximal triangle height if the asset price drops below the support.
As of Oct 17, BNB has not yet confirmed the pattern. However, it retested the resistance trendline and the 50-day exponential moving average (50-day EMA) on Oct 16, sliding 1% south. If the decline continues and BNB breaches the support, the coin’s target price would be $177, or 17% lower than the current value.
Meanwhile, the recent Binance.US FUD could have been responsible for the price correction.
Binance US halts dollar withdrawals amid insolvency news
Binance’s US unit has halted the withdrawal of the US dollar, its updated terms showed on Oct 16.
In the event that customers wish to withdraw dollar funds from their account, they may do so by converting US dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn.
read the announcement.
The Twitterverse (now X.com) erupted with rumors of Binance.US insolvency, even though the withdrawal restrictions only concerned dollars, and the FUD did not have much weight behind it.
Moreover, Binance’s US division has been involved in a legal battle with the US Securities and Exchange Commission (SEC) since June 2023. Thus, further restrictions shouldn’t have come as a surprise.
In September 2023, Binance.US chief executive Brian Shroder did a runner, raising suspicions that Binance.US could collapse like the FTX exchange. It did not.
However, within the past months, the company underwent a significant restructuring, resulting in the departure of approximately 100 employees, representing about one-third of its workforce.
