Binance Coin (BNB) price has taken a sharp plunge after the US Securities and Exchange Commission (SEC) filed a major lawsuit against Binance and its CEO, Changpeng Zhao. BNB coin dropped to a yearly low of $272.6. It has decreased by over 20% from its highest price this year.

The SEC issued a statement, as we mentioned here, accusing Binance of defrauding customers and offering regulated products to US customers without adhering to the law. This news has caused most cryptocurrencies to drop in value. We saw a similar reaction when FTX and Terra collapsed. Notably, XRP and other coins crashed after the SEC launched a lawsuit against Ripple.

The current state of regulations in the crypto industry is also causing concern. The US is taking an enforcement-oriented approach instead of engaging with the industry. Many analysts believe that the SEC will continue to be tough on digital currency companies.

Nevertheless, Binance is performing well. According to DeFi Llama data, it has had over $1.47 billion in outflows in the past 24 hours. Despite this huge number, the company still has more than $51 billion in assets. Moreover, investors often tend to buy the dip in crypto after major events. We saw this when the majority of coins rose in value after the FTX crash.

The BNB coin price has been in a slow bearish trend on the daily chart in the past few days. This sell-off was exacerbated by the SEC lawsuit. BNB dropped below the key support level of $298.4, the lowest point on May 12th. It is now below all moving averages and slightly above the key point at $265.6. Therefore, it is likely that the coin will remain under pressure this week and then recover when the lawsuit fades. As we have seen with XRP, it is possible for a coin to rise despite a lawsuit. The first level to watch will be at $265.

To buy Binance Coin, you can use eToro or Binance. eToro is a global social investment brokerage company that offers commission-free crypto trading and manual or social investing. It also has a CopyTrader system which allows users to automatically copy the trades of popular investors. Binance is one of the biggest cryptocurrency exchanges in the world and is better suited to experienced investors. It has over 600 cryptocurrencies to choose from and low trading fees.

Share this article to keep others informed.