BNB price rises 10% despite Binance Exchange’s international regulatory troubles

Source Fxstreet
Mar 7, 2024 02:00
  • BNB price has recovered all the ground lost on Tuesday and then some.
  • Binance Coin bullish outlook remains intact despite the exchange’s legal troubles locally and internationally.
  • A slip below $387.40 would produce a lower low, invalidating the bullish thesis.

Binance Coin (BNB) price continues to show resolve even as the network continues to suffer regulatory headwinds. The token is moving along with the prevailing sentiment in the market, with prospects for more gains even as altcoins continue to wake up.

Also Read: BNB Price Forecast: Outlook remains bullish despite Nigerian government case against Binance

Binance and Binance.US regulatory troubles

Binance Exchange is still at loggerheads with the Nigerian authorities, which recently summoned its CEO Richard Teng, on suspicions of money laundering and terrorism financing, local newspaper, Punch, indicated.

The Premium Times and BBC had also reported that the largest trading platform by volume metrics was “also accused of operating a business worth billions without the requisite registrations and documentation.”

With these, reports circulated that two of Binance executives had been taken into custody in Nigeria. Other reports also claimed that the Nigerian government was demanding a $10 billion fine. Nevertheless, Bayo Onanuga, a special adviser to the Nigerian president on information and strategy, denied this.

Binance exchange also corroborated the story, indicating that it had not had any discussions with officials about such a fine, the People’s Gazette reported.

Back in the US, the Securities and Exchange Commission (SEC) recently called out Binance for being “unwilling” to answer key questions, urging the court to demand compliance from the exchange. According to the financial regulator, the commission was not at an impasse with Binance.US.

In a filing to the district court on March 5, the SEC said that the legal entity trading as Binance.US, otherwise termed BAM Trading Services, has demonstrated unwillingness to answer certain SEC questions, and asked that the Court intervene to order BAM to address outstanding issues.

The exchange defended, however, that it has “gone above and beyond” to answer the agency’s “exceptionally broad” requests for information, adding, that “thousands of documents” had already been handed over as it pertains to “every conceivable aspect of its custody practices.”

Amid the legal tussle with the US SEC, Binance.US has suffered a 75% revenue drop, compelling it to retrench around 67% of its labor force, the company’s COO, Christopher Blodgett, had revealed during a deposition in December.

Nevertheless, these have not caused the exchange to miss out on the ongoing market rally.

Binance Coin price soars 10%

BNB price is up 10% in the last day, with prospects for more gains amid rising momentum, as shown by the Relative Strength Index (RSI) trajectory, and a strengthening price trend seen with the volume indicator showing large bars.

Increased buying pressure could see BNB price shatter the formidable resistance set by the equal highs at $427.00. Flipping this blockade into support would set the pace for Binance Coin price to clear the $434.70 range high, with the potential to extend the gains to $480.00, nearly 15% above current levels.

The strong reaction from the $387.40 support could make it the ideal time to pay attention to Binance Coin again.  

BNB/USDT 1-day chart

On the other hand, a rejection from the equal highs could send BNB price back to the midline of the channel, which coincides with the $387.40 support level. A slip below $387.40 would produce a lower low, invalidating the bullish thesis.

Cryptocurrency prices FAQs

Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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