Analyst predicted a 40% drop in the price of BNB amid the SEC’s investigation

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What’s new? Cointelegraph analyst Yashu Gola reported that the rate of the native token of the Binance cryptocurrency exchange (BNB) may fall 25-40% in 2022 amid the SEC’s investigation. The regulator launched an investigation into whether the token was a security in the 2017 initial public offering (ICO). The price of BNB may also be adversely affected by a Reuters journalist’s investigation, which found that over $2,35 billion had been laundered through the exchange by attackers since Binance’s inception.

Article on Cointelegraph

BNB prediction. Analyst Yashu Gola noted that according to the Fibonacci retracement graph, built from the token’s $10 price low to the swing high of $700, the asset is now at 61,8 (around $274).

Fibonacci levels are an indicator that shows possible retracement levels for an asset. It is used by traders to find entry points.

Источник: Tradingview.com

Negative factors such as the SEC’s investigation and the Reuters piece increase the probability of the BNB price falling below the Fibonacci line of 61,8. If this happens, the coin rate may fall to the $200 level and then drop to $160 (the blue wave). However, if the altcoin manages to hold at the current correction level, the price of BNB may rebound to $380 in the future (the red wave).

In addition, a Twitter user under the nickname ByzGeneral reported that investors have started to actively sell BNB because of the FUD.

FUD (fear, uncertainty, and doubt) is a propaganda tactic used in marketing to make investors doubt the safety of their investments and provoke sales of an asset.

$BNB aggressively shorted because of the FUD. pic.twitter.com/BzvGtPcK3d— Byzantine General (@ByzGeneral) June 6, 2022

As of June 8, 07:50 UTC, the token is trading at $290,05, up 2,33% in the last 24 hours (according to Binance).

Binance did not comment on how negotiations with the SEC are proceeding in connection with the launch of the investigation. However, after the Reuters article was published, the exchange’s representatives posted a detailed email exchange with the outlet’s journalists and noted that “interested parties continue to spread disinformation or purposely mislead the general public.”