$BNB, the Binance exchange token, is on the brink of a potential heavy collapse. Will this bring Bitcoin and the crypto market down?
$BNB on the brinkFollowing negative downward price action since November 2021, the $BNB token has reached the point where a slide under the critical $220 level could lead to a calamitous -5x crash down to below $50.
Right now the price is struggling to stay within the bottom limits of a bear flag it first entered in early June of this year. The price has already slid out of the bottom of the bear flag at time of going to press, but this break is still to be confirmed.
A nervousness does still appear to be upon the crypto market over recent weeks as bears and bulls both eye bitcoin and ethereum as they approach their own critical trendlines and support levels.
Bitcoin and Ethereum also at critical levelsIf bitcoin hits the support of its bullish trendline this is likely to be as low as $28,000. The 200 daily moving average is just below this at $27,300. In its favour, the bitcoin hash ribbons indicator very recently signalled a buy. Ethereum is already at and holding its bullish trendline at just under $1,800. This is also the level of its 200 day moving average. Both bitcoin and ethereum could see a significant price drop if these levels break.
The rest of the altcoin market is mostly doing a lot better than either bitcoin or ethereum so far today. Total 3 (all cryptos with the exception of bitcoin and ethereum) is up 1% on the day so far. Strong support at $331 billion is below the current value of just under $337 billion.
$RUNE is still on the charge this morning with a more than 6% gain so far. This is counted in $RUNEs epic 70% rise since the beginning of August, making this crypto one of the biggest movers over the last couple of weeks.
Kaspa ($KAS) has also featured prominently among the altcoins but more so over the longer term. The innovative proof-of-work layer 1 rose more than 330% since May, but has been correcting over the last couple of weeks. It is up 3.6% on the day so far.
A $BNB wipeout could mean serious issues for cryptoThe question now is whether or not $BNB can hold its ground at $220 if it should get down there. Many will be shorting the token given how the SEC is suing both Binance and its CEO Changpeng Zhao. Should $BNB indeed make the drop, the token, as well as the exchange, could be in serious financial trouble.
With Binance accounting for much of the trade in crypto, plus holding large amounts of many other tokens, such a scenario could be calamitous for the exchange, as well as for the crypto market in general.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
