BNB Drops Below Key Support as Binance Halts Transactions

• Binance, on 25 May, decided to suspend transactions for some assets, which impacted BNB’s price action.
• BNB managed to drop below a key ascending support line and experienced significant sell pressure in the last two days.
• The 200-day MA could act as a support level for BNB if it is able to keep its bearish momentum.

Binance Halts Deposits

On 25 May, Binance announced that they would temporarily suspend deposits from multiple networks. This created a significant dip in the number of active addresses and generated sell pressure for BNB.

BNB Drops Below Key Support Level

As a result of the announcement from Binance, the price of BNB dropped below an important ascending support line. This caused further bearish momentum for the cryptocurrency over the last two days.

200-Day Moving Average Could Act as Support Level

At press time, BNB was trading slightly above its 200-day moving average at $304. If it is able to keep its current bearish momentum, then this could act as a support level for investors who are looking to buy into the asset.

Binance Resumes Deposits

After halting deposits from certain networks earlier in the day, Binance announced that it had resumed deposits from Ethereum and FTM networks. This led to a sharp bounce back in active addresses on their network, suggesting that investors may be more confident in investing into this asset now than before.

Will Bulls Step In?

Despite the resumption of deposits from certain networks by Binance and potential support levels provided by its 200-day moving average, there is still no assurance that bulls will come back into this market anytime soon. Therefore, investors should proceed with caution when it comes to making investment decisions regarding this asset as it could still be prone to further downside movements if bears retain control over its price action.