|

Binance Coin price at risk of dropping 10% after BNB case reveals intent to evade US Law

  • Binance Coin price has not joined the breakout trades in altcoins and cryptocurrencies on Thursday.
  • BNB is still under pressure from the CFTC regulatory lawsuit.
  • The Wall Street Journal revealed that Binance offered perks to evade US Law.

Binance Coin (BNB) price is at risk of dropping sharply yet again as some more details came out on the back of the Commodity Futures Trading Commission (CFTC) lawsuit against Binance. Evidence is very clear that there was an intentional strategy to evade US law, CFTC Chair Rostin Benham said on Bloomberg Television. This opens up a very large exposure for Binance to large fines, sanctions and possibly even a ban.

Binance Coin sees accusations mounting as sell-off risk grows

Binance Coin price flirted with the green ascending trend line earlier this morning in the ASIA PAC session after the Wall Street Journal printed the story on the allegations and proof of evidence. As a broker, Binance has been allegedly helping clients to circumvent the US rules and laws when it comes to trading cryptocurrencies as a US citizen. The CFTC case is being added to the pile of cases that the Internal Revenue Service (IRS) and federal prosecutors recently launched against BNB. 

BNB will be stuck in courts and court rulings for several months and possibly years to come, costing millions in fees for lawyers and possible fines and penalties. Expect this to have a negative replication for BNB price with a drop of nearly 10% as the first leg lower. That means that $300 can no longer be maintained, and price action needs to reside near $290 at the 200-day Simple Moving Average as support for now until further details get communicated.

BNB/USD  4H-chart    

BNB/USD  4H-chart    

As these litigations can take months or even years, price action could continue and only react when there is an outcome at hand. This opens room for BNB to jump back up toward that red descending trend line. Expect a breakout to be difficult, but a swing toward $345 is possible if it materializes.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

More from Filip Lagaart
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.