Binance coin price prediction: BNB yes 14% drop

Binance coin (BNB) price has failed to gain momentum despite a significant recovery from the August lows. After a strong rebound from the August lows, the bulls have lost momentum once again. Consequently, the bears are targeting the range low that lies 14% below the current price.

BNB price dropped to $203.4 in August 2023. Even after a pullback, the coin is still up 5.5% from last month’s lows. Advanced technical analysis suggests that the bears are gaining strength as the risk-off approach prevails in the markets.

BNB Price Outperforms Bitcoin

Despite showing a weakness in its USD pair, Binance coin is holding up nicely against Bitcoin. The following BNB/BTC chart shows the strength of the exchange coin in terms of Bitcoin. After a 1.36% drop last week, the pair has already recovered 1.33%.

The Bitcoin pair of an altcoin is one of the best measures of a coin’s strength. I expect a strong price rally if BNB breaks the 0.0085 resistance level on the following chart. In that case, a valid price target could be the key psychological level of $0.01.

Binance Smart Chain TVL Shrinks To New Lows

Binance coin price has also been affected by the decrease in network activity on the Binance Smart Chain (BSC). BNB is used to pay for the transaction fees on BSC, and its demand has significantly decreased since 2021. Nevertheless, the digital asset still holds a lot of uses in the whole Binance ecosystem.

According to the Decentralized Finance (DeFi) tracking website, DeFi Llama, there is currently $2.21 billioin locked on BSC. It is the new low for the blockchain network since its 2021 peak of $21.5 billion. The decrease in TVL can be attributed to the decrease in number of crypto users.

Binance Coin Price Prediction

A look at the following BNB price chart reveals that $220 has emerged as a major resistance level since the price broke below this level earlier this month. A reclaim of this level may put a Binance coin price prediction of $250 on the cards.

My Binance coin price prediction will remain bearish as long as the price remains below $250 level. Until then, a retest of the range lows around $184 will remain on the cards. This would mean a potential downside of more than 14% form the current price level. The ongoing allegations and the SEC lawsuit may act as acatalyst for such a bearish move. Another major factor affection the price action of altcoins is the recent weakness in Bitcoin.