Leading Crypto Altcoin May Drop 40% If Support Fails

Although Bitcoin has had a stellar year thus far, 2019 has not been a strong year for the altcoin market. Only two out of the thousands of altcoins on the crypto market were able to outperform Bitcoin over the first half of the year.

However, one of those top performers is in trouble of retracing much of the gains it experienced this year, falling as much as 40% if the next support level fails, according to one crypto analyst.

Crypto Analyst: Binance Coin at Risk of a 40% Drop

2019 has been the year of Bitcoin, but also the year of Binance. Or at least the first half of the year was.

During the first half of 2019, Binance made announcement after announcement, debuted a DEX, launched margin trading, and so much more. Between the constant positive media attention, and the Binance Launchpad platform for IEOs utilizing the native crypto token of the exchange, driving up demand, the altcoin called Binance Coins value skyrocketed as a result.

But come June things began to become less rosy for the crypto market poster child. Binance revealed it will soon be closing its doors to United States-based investors – a subset of crypto investors that make up the lions share of the market. The move is to comply with global financial market regulators, who do not want American citizens trading certain crypto assets that may be deemed securities or fall under specific regulatory guidelines.

Instead, Binance will close trading and deposits for these customers, and usher them into a new US-based Binance exchange with only 29 altcoins and Bitcoin under consideration for inclusion.

The uncertainty around the future value of Binance Coin, how it is implemented in the US platform, if at all, and many other unanswered questions remain, and its causing the value of Binance Coin to drop. One crypto analyst says that if support doesnt hold in BNB price charts, Binance Coin could fall an additional 40% from current prices.

If you are holding @cz_binance's coin, you sure as hell want to see a bounce from diagonal support + 19.5k area.

Failure to do so, next support is nearly 40% lower

Exchange will close access to USA accounts in 2 days – curious to see this play out pic.twitter.com/ieX2wSoZyQ

Binance Coin has been among the strongest performers in 2019, outperforming both Bitcoin and Litecoin to be the best performing crypto asset in the market. Outside of these three crypto-assets, though, the rest of the altcoin market has been bleeding out.

Related Reading | PSA: Only 48 Hours Remain for US Crypto Investors to Trade on Binance

Much of the selloff in altcoins is due to crypto investors no longer willing to take the regulatory ri ...

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Tags: Binance, Bitcoin, Cryptocurrency, Shulman, United States of America, Coin, Crypto Analyst, Litecoin