Binance Coin (BNB) Price Ignores CFTC Lawsuit Against Binance Crypto Exchange, Seeks Support to Launch Powerful Rally
Binance decided to sue
On March 27, it became known that the world’s largest cryptocurrency exchange Binance Holdings Ltd. and its founder and CEO, Changpeng Zhao, have received a lawsuit from the U.S. Commodity Futures Trading Commission (CFTC) for alleged violations of derivatives trading rules.
Changpeng Zhao himself has already stated that he considers the accusations made by the regulator to be unfair. However, investors have already withdrawn more than $1.6 billion from Binance since receiving the lawsuit from the CTFC.
Read also a special digest: The reaction of crypto investors to Binance problems: forecasts and memes
BNB pulled back from yearly highs
The results of the technical analysis of the daily chart show that on March 10, the BNB price broke through the descending resistance line, and on March 18 it updated the high of this year, reaching $ 346.30. During this rise, the token recovered above the $286 horizontal area, which is now expected to provide support to the market.
The Binance Coin rate has rolled back from the updated high and is now trading slightly above the Fibo 0.5 retracement level at $305. If the price fails to launch a bounce from here, it could sink near the aforementioned $286 support area.
In addition, the daily RSI is now directly in the 50 area.. A bounce off this line could coincide with a bounce off the $305 support area. In this case, BNB could rise to the next resistance at $357.
Wave analysis outlines a confident bullish outlook for Binance Coin. It looks like the price is now in wave 3 of a five-wave bullish structure.. The third wave often has the steepest slope of any of the three bullish waves in the structure.. The results of the sub-wave analysis are shown in white, and they show that the market is completing wave 2.
If the results of the analysis are correct, then the price of BNB may soon accelerate the pace of the rally. The potential target of this bullish move and the top of the wave could be the area of $498 (Fibo level 0.618 correction of the entire decline from the historical maximum).
However, if the price drops below $265, this will cancel the bullish structure and signal a bearish trend.. Then the Binance Coin rate may fall to the $220 support area.
Thus, the most likely forecast for BNB assumes an acceleration of growth in the direction of $357 and potentially $498. A fall below $265 will cancel this scenario and could set the price down to $220.