Binance Coin (BNB) still maintains its position as the third largest non-stablecoin crypto by market capitalization, despite the regulatory challenges the issuing company Binance has been facing. BNB currently trades at $232, down 1.09% in the last 24 hours. The exchange crypto is down 6.6% over the past week and 25% below its price 30 days ago, according to data from TradingView and CoinMarketCap.
The downturn in Binance Coin price is as a result of regulatory challenges the Binance cryptocurrency exchange has been experiencing around the globe. According to a recent notification from the company to its users, the crypto exchange has lost another European associate due to increasing regulatory scrutiny.
Binance Loses It EUR Banking Partner
According to a notification shared with its users on June 28, the largest crypto exchange by trading volume said it will stop working with Paysafe Payments Solution Limited by September 25. This means that the exchange has roughly three months to identify and partner with another EUR deposits and withdrawals provider.
An excerpt from the announcement reads:
“Our current EUR fiat payments partner, Paysafe Payments Solution Limited, will stop offering SEPA deposit services to Binance users from September 25 2023.”
SEPA, the short form of Single Euro Payments Area, is the European Union’s integrated, cross-border payment network for euro transactions.
The announcement also informed its European users that they will be “required use new banking details to make EUR deposits” into their Binance Fiat wallets, meaning they “may be required to accept new terms and conditions.”
The notification comes on the back of the crypto firm facing increasing clampdown from financial regulators in the U.S. and Europe.
During the first week of June, the US Securities and Exchange Commission (SEC) sued Binance, Binance.US and its billionaire CEO Changpeng Zhao, accusing them of violating Federal securities laws and operating a “web of deceptions.”
Since then, the crypto giant has announced a retreat from the United Kingdom, the Netherlands, Cyprus, while Belgium’s market watchdog ordered Binance to halt offering crypto services in the country.
BNB Price Weighed Down By Binance Woes
Binance Coin price continues to rest above the critical support at $239, with bulls attempting to regain all the losses due to negative developments around the Binance crypto exchange. The news of the SEC lawsuit set BNB on a freefall, dropping 28% from $307 on June 4 to set a swing low at $220 on June 12.
What followed was a quick and sharp recovery to $257 before another steep drop toward the $230 demand zone. This price action has formed an inverted V-shape on the daily chart (see below).
At the time of writing, BNB price is sitting on immediate support at $229. Note that a daily candlestick close below this level would spell doom for the altcoin paving the way for a drop toward $200. Such a move would represent a 13.73% drop from the current level.
BNB/USD Daily Chart
Supporting the grim outlook for Binance Coin price is the position of the Relative strength Index (RSI) at 33, suggesting that the bears are in full control of the BNB price. Note that BNB’s downward projection will gain momentum once the RSI crosses the 30 line into the oversold zone.
Also supporting BNB’s bearish narrative were the downfacing Simple Moving Average (SMAs) which also provided selling pressure zones on the upside. The Moving Average Convergence Divergence (MACD) indicator was positioned below the zero line in the negative region, adding credence to the negative outlook.
On the upside, the same MACD was facing upward and the green histograms suggested that the market sentiment was positive. As such, the ongoing recovery may continue to push the BNB out of the bearish chart pattern with the first major obstacle merging from the $250 level.
Bulls would be required to shatter this barrier to revisit the local high at $257. This is where the upside for BNB may be capped in the short term.
