Binance Coin (BNB) Price Staring at 23% Drop After Paxos Stops Minting BUSD

The Binance Coin (BNB) price is correcting after a massive upward movement in Jan. Negative Binance news likely accelerated the drop.

Some of the most negative Binance news for a long time hit on Feb. 13. Paxos, one of the leading blockchain and tokenization infrastructure platforms, announced that it has ended its relationship with the crypto exchange regarding their stablecoin, Binance USD (BUSD).

Therefore, the platform will no longer mint BUSD. However, the stablecoin will be redeemable for at least two more years. Accordingly, customers can swap BUSD for Pax dollar (USDP). Shortly afterward, BUSD depegged slightly. The decision comes after close coordination with the New York Department of Financial Services (NYDFS).

The BNB price had been mired in a decrease, and the negative news caused a fall another 7%.

Binance Coin Price Falls After Announcement

The price action from the daily time frame predicts a bearish Binance Coin price for Feb. Besides the negative Binance news, there are two more reasons for this.

Firstly, the Binance Coin price has completed a five-wave upward movement. So, it has now likely begun a correction. The long-term count is still unclear since the ongoing decrease could be part of wave B (black) or wave two (red). The corrective count (black) becomes more likely if the BNB price falls below the 0.618 Fib retracement support level at $260, while the bullish one becomes more likely if the price bounces above it. In any case, an upward movement afterward is expected.

The second reason is the bearish divergence in the RSI (green line), which usually precedes downward movements. The fact that the RSI decreased below 50 legitimizes the downward movement.

Therefore, the BNB price is expected to fall toward at least $260. Measuring from the high, this would be a drop of 23%. An increase above the $337 high would invalidate this bearish forecast and could send BNB to $400.

BNB/USDT Daily Chart. Source: TradingView

To conclude, the most likely Binance Coin price forecast indicates that the price will fall to at least $260 before regaining momentum. An increase above $337 would negative this bearish forecast and instead send the price toward $400.

For BeInCrypto’s latest crypto market analysis, click here.


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