BNB Price Analysis Shows Open Interest Rising After $220 Support Level Holds

In a time of intensifying regulatory scrutiny, Binance Coin ($BNB), is nativating turbulent waters, after both Binance and Coinbase were sued by the U.S. Securities and Exchange Commission (SEC). The lawsuits put significant pressure on BNB’s price performance.

Binance was sued by the SEC earlier this month, with the regulator accusing the exchange of unlawful securities exchange in a move that sent shockwaves throughout the cryptocurrency space. The lawsuit and a subsequent lawsuit filed against Coinbase saw the price of most major cryptocurrencies plunge, with Bitcoin briefly dipping below $25,000, and BNB itself dropping to close to the critical support level of $220.

As CryptoGlobe reported, BNB’s 200-day moving average is currently at the $240 mark, with a break below that level being seen as a potential move into downtrend territory. BNB is, at the time of writing, trading at $241, just barely holding onto it.

BNB’s technical indicators and moving averages currently appear to be somewhat mixed. The technical indicators are leaning toward a sell signal, with a breakdown of three buy signals, four sell signals, and a neutral stance on three. In contrast, the moving averages project a more optimistic outlook, showing seven buy signals compared to five sell signals.

These technical indicators, while only part of an investor’s decision-making process, suggest caution is necessary. The risk of an aggressive sell-off of BNB looms, with the critical $220 support level being a particularly important one given the potential liquidations that could occur if it’s breached.

There has recently been an uptick in open interest (OI) rates since the SEC filed its lawsuit against Binance, signaling some investor interest despite the regulatory turnmoil. OI on BNB has increased from $316 million on June 5 to $385 million, indicating a rising number of open contracts for BNB in the futures market.

Recently, Binance and the SEC reached an agreement to avoid a freeze of Binance.US’s assets, with the agreement seeing Binance.US limit the access to the private keys of its wallet to U.S. personnel only.

Featured image via Unsplash.

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