The cryptocurrency market has been struggling with high volatility for some time. Macroeconomic developments and developments in the industry have resulted in a decline in the price of crypto assets. Bitcoin price failed to hold support and declined to $16,500. However, among all these developments, Binance Coin There was also a sharp drop in price.
The crypto community has been speculating for a while that the Binance exchange will crash. According to speculation, the giant stock market will crash like Terra and FTX. The most important reason for these speculations was the suspension of USDC transactions. Panicked traders began to quickly withdraw their holdings from the stock market. On the other hand, some problems arose in the “proof of reserve” report quoted by the exchange.
This created a huge FUD (fear, uncertainty and anxiety) in the crypto space and caused a drop of about 25% in just a few days. Meanwhile, the price has rebounded a bit but some names expect a continuation of a ‘steep down’ trend like the LUNA crash.
same vibes pic.twitter.com/TLthRvsfAu
— Bluntz (@SmartContracter) December 16, 2022
BNB price has dropped from a multi-month support zone previously seen in LUNC (formerly LUNA). The price has peaked and plunged sharply for the first time in history. Comparing both the charts and the scenario, the analyst warned that the BNB price could also drop drastically, similar to the LUNA’s decline at the time.
The analyst shared his prediction, referring to the Elliot wave theory. The above-mentioned BNB/BTC chart is looking for a downtrend that could push the price below $150 in the coming days, as it has completed wave 5 according to theory.
Binance Coin (BNB) is currently trading below $250. It is struggling to surpass $250 even though it has risen from the low of $220.5. If the price continues to decline, fear among investors will increase.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.