BNB Price Turns Bearish As Binance Connect Shuts Down Abruptly

Binance Coin price is trading at $234 with a bearish bias, plunging 2.7% over the last two daily trading sessions. This after Binance Connect, the regulated division responsible for crypto buying and selling within the Binnace ecosystem announced that it was shutting down its operations on August 16.

According to an email conversation between a Binance spokesperson and Cointelegraph, Binnance made the tough decision to deactivate Binance Connect due to the discontinuation of the card payments service by the supporting provider.

The Binance representative said:

“At Binance, we periodically review our products and services to ensure that our resources continue to be focused on core efforts that align with our long-term strategy. In the last six years, Binance has grown from being an exchange to a global blockchain ecosystem with multiple business lines. We consistently adapt and modify our business approach in response to changing market and user needs.”

Following the news, investor sentiment on BNB turned bearish as speculations grew that the coin may dump further. An X user Ali said that the Binance Coin price was facaing challenges in its trajectory. He posted the following chart saying that BNB was poised for a 23% correcion to $150 if it failed to reclaim $240 as support.

#BinanceCoin | The problem with the recent downswing is that it attempts to confirm a bear flag for many #altcoins, including $BNB.
If #BNB can’t reclaim $240 as support, then we could be looking at a 20% to 30% price correction. pic.twitter.com/OLFOCb4KZ3

— Ali (@ali_charts) August 15, 2023

The recent decline has sparked skepticism among a section of the cryptocurrency community, as it suggested the potential confirmation of a bearish triangle pattern for Binance Coin and various other altcoins.

BNB Price Bearish Triangle Projects a Drop To $220

Binance Coin (BNB) is currently trading at $234.3 and has seen a price decline of 1.9% in the last 24 hours and a 4.47% price decline in the past 7 days. The current market capitalization of BNB is $36 billion, making it the 4th largest cryptocurrency by market cap. The coin’s 24-hour trading volume has increased 30% to $499,772,632, reinforcing the increasing transaction activity.

The key price point that traders were closely watching was the $237 mark. aftyer BNB bulls failed to defend this support level, the price dropped below the descending triangle confirming a bearish breakout. This suggested that the coin might experience a priec correction ranging between 4% and 5% to reach the technical target of the governing chart pattern at $220.

BNB/USD Daily Chart

This gloomy outlook was supported by the downfacing moving averages, which were also positioned above the price, representing areas of stiff rsistanced. Also note that the SMAs had sent a call to seel Binance Coin in the form of a bearish cross. This took place on August 15 when the fast moving 50-day SMA crossed below the slow moving 100-day SMA.

Moreover, the downward moving MACD has also sent another sell signal. This happened on August 12 when the MACD lien crossed below the signal line. This bearish signal was still in play suggesting that the market conditions still favoured the downside.

Furthermore, the Relative Strength Index was moving downward within the negative territory. The priec strength at 37 suggested that the bears were in full conntrol of the price.

While some this means traders should adopt a cautious approach, others remain optimistic, hoping that the coin will bounce back and stabilize above the crucial $240 support level. If this happens, increased buying could push it to the 50- and 100-day SMAs at $241 before.