BNB price falls 10% as US court summons Binance CEO, Changpeng Zhao
- Following the SEC complaint, the US District Court summoned Binance CEO, Changpeng Zhao.
- The summons has granted Zhao 21 days to respond, with repercussions of judgment by default if he fails to do so.
- CZ has acknowledged the news, saying that while he must respond, he does not need to appear in person.
- Binance Coin is down almost 8% in the last day and 1% in under one hour after the news broke.
Binance Coin (BNB) is down a staggering 20% since June 4 to the current price of $260.93, representing a 10% downswing since the beginning of the Asian session on June 7. The leg down comes in light of recent developments in the case between Binance and CEO Changpeng Zhao (CZ) versus the US Securities and Exchange Commission (SEC).
Also Read: SEC triggers crypto bloodbath as Coinbase, Kraken brace for token delistings after Binance lawsuit
A lawsuit has been filed against you regarding the recent SEC action. Binance has yet to respond to the reported summons. Additionally, details on whether or not it has been officially served are currently unavailable.
BNB price slumps further over US court summons to Binance’s CZ
Binance Coin (BNB) price has slumped 10% over the news of the US District Court summoning Changpeng Zhao. Moreover, the summons was issued on June 7, granting Zhao 21 days to respond.
I was told this is just part of the SEC compliant process. Nothing new.
— CZ Binance (@cz_binance) June 7, 2023
Also told I won't have to appear in person. No need to FUD. pic.twitter.com/NYUlBCIirG
CZ has since confirmed that it was standard operating procedure and that he did not have to physically appear. Noteworthy, the court said that it intends to fight the complaint that was issued against it. Moreover, Coinbase issued a similar complaint, except it did not include allegations of customer fund mismanagement.
These all draw from the Monday lawsuit by the US SEC, suing Binance and its CEO over several alleged violations of the country's securities laws. As reported, the exchange committed to fighting "vigorously" to defend itself. While the summons, filed Wednesday in the US District Court for the District of Columbia, may be procedural, it is notable because of where it was delivered — an address for a seaside apartment block in Malta.
Binance Coin price forecast as BNB sets a new yearly low
Binance Coin (BNB) price is trading with a bearish bias, down almost 20% in less than a week. The overall outlook indicates a declining momentum evidenced by the falling Relative Strength Index (RSI). Notably, the altcoin has slipped below the crucial support at $260.7, to set a new yearly low at around $253.4.
An increase in seller momentum could see the BNB price tag the psychological $240.0, a level last seen around December, before a possible reversal.
BNB/USDT 1-Day Chart
On the other hand, the RSI was deep in the oversold region, suggesting an incoming pullback of correction in the market as investors buy cheap. The subsequent demand pressure could prove bullish for BNB.
Late investors buying BNB could inspire a new wave of bullishness, pushing Binance Coin above the 200-day Simple Moving Average (SMA) at $300.6 or higher to breach the resistance confluence between the 50-day and 100-day SMA at $313.5.
The ensuing buying pressure could see BNB price tag the 62% Fibonacci retracement at around $320.5 or the 70.5% Fibonacci retracement at $329.5. In a highly bullish case, the altcoin could tag the 79% Fibonacci retracement at $338.5, setting the tone for an extended rally north.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
