The value of Binance Coin (BNB) has taken a downward turn, resting at $234 and marking a 2.7% drop across the last two trading days. This slide came in response to an unforeseen announcement from Binance Connect, the regulated arm handling cryptocurrency transactions within the Binance ecosystem. The division disclosed its abrupt closure, effective as of August 16.
Binance Connect attributed this decision to the discontinuation of card payment services by its supporting provider. In correspondence between a Binance representative and Cointelegraph, it was revealed that the decision to deactivate Binance Connect emerged from Binance’s strategic review process, which evaluates the alignment of its products and services with its overarching long-term strategies.
The Binance spokesperson elaborated:
“At Binance, we periodically review our products and services to ensure that our resources continue to be focused on core efforts that align with our long-term strategy. In the last six years, Binance has grown from being an exchange to a global blockchain ecosystem with multiple business lines. We consistently adapt and modify our business approach in response to changing market and user needs.”
Following this unexpected announcement, sentiment within the BNB investor community turned bearish. Speculations arose that the coin could face further declines. An individual known as Ali, an X user, pointed out the challenges in BNB’s trajectory. He shared a chart indicating the potential for a 23% correction to $150 if the coin failed to regain $240 as a support level.
Bearish Signals Surround BNB Price
Presently, Binance Coin (BNB) trades at $234.3, reflecting a 1.9% decline over the past 24 hours and a 4.47% decrease over the last week. This positions BNB as the 4th largest cryptocurrency by market capitalization, standing at $36 billion. Impressively, the coin’s 24-hour trading volume has surged by 30% to reach $499,772,632, underlining heightened transaction activity.
Within this context, market participants closely monitored the $237 price threshold. BNB bulls struggled to uphold this level of support, culminating in a price drop below a descending triangle pattern—a development indicative of a bearish breakout. This circumstance suggests a potential price correction within the range of 4% to 5%, ultimately targeting the technical objective of the governing chart pattern at $220.
