For three months in 2023, Binance’s exchange coin $BNB seemed headed for a significant decline, potentially losing over three-quarters of its value. However, today, $BNB is trading just 13% below its highest value ever. This marks a remarkable turnaround for the cryptocurrency.
Starting from August 2023 and continuing until the US Department of Justice (DOJ) levied a staggering fine of $4.3 billion on Binance in November 2023, the price of $BNB stayed around slightly above $200. If the price had dropped below this mark, it could have led to a disastrous decline, potentially plunging to below $30.
Binance and CZ Face US Government Scrutiny
For a while, the US government and its financial regulator, the Securities and Exchange Commission (SEC), had been closely monitoring Binance and its CEO, Chang Peng Zhao (CZ). The Biden administration, known for its skeptical stance on cryptocurrencies, aimed to target Binance, a major player in the crypto sphere, escalating pressure on both the exchange and its CEO.
Under mounting scrutiny, Binance found itself under increasing pressure from the US government. As the largest crypto exchange by trading volume globally, it faced intense scrutiny regarding its operations and compliance with regulatory standards.
Eventually, Binance relented to the pressure. CZ, the CEO of Binance, resigned from his position and traveled to the US to address various allegations of malpractice and wrongdoing. This move marked a significant development in the ongoing saga between Binance, the US government, and regulatory authorities.
$BNB’s Recovery Amid Legal Turmoil
The weekly chart from the second half of 2023 paints a grim picture for $BNB. Particularly from August to October, the cryptocurrency faced significant challenges, culminating in the exchange’s agreement to settle a substantial $4.3 billion fine imposed by the DOJ.
During this period, $BNB teetered on the edge, with the threat of a sharp decline looming. If its price had fallen below $200, it would have signaled a massive 85% reversal, with the next support level at a distant $30.
Source: Coingecko/Trading View
Despite initial setbacks, $BNB showcased resilience. While news of the settlement initially led to an 18% correction, followed by subsequent declines in early 2024, the cryptocurrency rebounded strongly over the first quarter of the year. Remarkably, it now stands poised to challenge its all-time high of $691 recorded in May 2021.
Analyzing $BNB’s Daily Chart
Source: Coingecko/Trading View
Zooming into the daily timeframe reveals an intriguing scenario for $BNB. The cryptocurrency is currently ensconced within an upward sloping wedge, typically considered a bearish pattern. However, if $BNB manages to break out of this pattern to the upside, it could signify an incredibly bullish turn of events.
To achieve this bullish momentum, $BNB faces a couple of significant hurdles. The first obstacle lies at $632, followed by another resistance level around $656. Surpassing both these levels would pave the way for a potential surge to a new all-time high beyond $690.
Despite the challenges posed by the pattern and resistance levels, $BNB’s ability to overcome these barriers could mark a remarkable recovery, showcasing its resilience in the face of previous adversities.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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