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Binance Coin (BNB) suffered the brunt of the US Securities and Exchange Commission (SEC) lawsuit against Binance Exchange. In the aftermath of the class action lawsuit, BNB fell almost 25% as investors hedged their holdings. The simplest explanation is that they wanted to avoid falling victim to what happened to FTT after the FTX implosion.
Nevertheless, BNB is staging what appears to be a V-shaped recovery, backed by positive developments in the legal debacle. Thus far, Binance Coin is up almost 12% after bouncing from the critical support at $231.2. Notably, this level was the lifeline that broke the altcoin’s fall recently and during the December dip associated with FTX.
Binance Coin Recovery Rally, Establishing The Drivers
Binance Coin has responded to the promising developments in the SEC lawsuit. For starters, the altcoin found support when the exchange and its CEO, Changpeng Zhao, built capacity in its defense. The defendants hired George Canellos, former Chief of the Major Crimes Unit in the US Attorney’s Office for the Southern District of New York. He is also the former head of the SEC’s New York Office and former SEC Enforcement Division Co-Director.
Binance/DOJ Newsflash:
Binance and CZ just added a uniquely qualified criminal defense all-star lawyer to their legal team: George Canellos, former Chief of the Major Crimes Unit in the U.S. Attorney’s Office for the Southern District of New York and former head of the SEC’s New… pic.twitter.com/lQlkZ6oxYc
— John Reed Stark (@JohnReedStark) June 12, 2023
The legal team, constituting Canellos and others, petitioned the court to reject the SEC’s proposed temporary restraining order on its assets. Amy Berman Jackson, the Judge overseeing the case, denied the petition, asking the plaintiffs and defendant to continue negotiations.
There’s absolutely no need” for a restraining order should the two sides agree on limits restricting Binance.US’ operations in the United States. Shutting [Binance.US] down completely would create significant consequences for the company and the digital asset markets in general.
This boded well for Binance Coin as the court later ruled in favor of the exchange, conditionally restoring its US operations.
Part of the conditions included Binance repatriating all assets held for the benefit of Binance.US trading customers. The deal was also limited to allowing Binance.US employees to access customer funds on the US-based crypto exchange. For clarity, Binance Global officials are not allowed access to the private keys of all wallets. This includes cold and hot wallets, hardware, and software alike. Further, they cannot access Binance.US’ internal systems and controls within 13 days beginning June 17, 2023.
Binance To Unlock The Full Potential Of BNB Chain With Optimized Layer-2 Solution
The latest development in the Binance ecosystem that adds to the current bullish momentum is the unleashing of the full potential of the BNB Smart Chain. Based on recent reports, the ecosystem plans to introduce an optimized Layer-2 solution as part of its commitment to address the network’s adoption needs while delivering optimal performance.
As blockchain technology continues to evolve, scalability remains a critical challenge.
But fear not! Enter opBNB, a game-changing Layer 2 scaling solution designed to overcome the limitations of Layer 1 (L1) networks.
Let’s discuss opBNB below 🧵https://t.co/irYn1OPtfQ
— BNB Chain (@BNBCHAIN) June 19, 2023
The feature, dubbed opBNB, is poised to deliver lower fees and higher throughput. It uses the OP Stack as a high-performance L2 solution within the BNB ecosystem. opBNB has a block size of 100 megabytes, which keeps its gas fees stable, affordable, and secure. Security comes as opBNB adopts a fraud-proving scheme to ensure the validity of transactions. It is also compatible with the Ethereum Virtual Machine (EVM).
BNB Recovery – Is It Sustainable?
As the recovery continues to mold, investors wonder whether it is too late to buy BNB. At the time of writing, the altcoin is auctioning for $248.4, a daily rise of 3% with a 58% increase in 24-hour trading volume. This indicates a growing demand for Binance Coin as investors trust its viability.
The upward movement of the Relative Strength Index (RSI) suggests a rising buyer momentum. BNB could break above the current roadblock at $256.2 if this is sustained. A decisive break above this supplier congestion level could pave the way for Binance Coin to score more gains for investors.
Potentially, BNB could tag the 50-, 100-, and then 200-day Exponential Moving Averages (EMA) at $280.8, $293.7, or $298.7, respectively. Binance Coin could tag the $348.4 resistance level in a highly bullish case, reclaiming the mid-April highs. Such a move would constitute a 40% climb from the current level.
The Awesome Oscillators (AO) indicators favored the upside as the histograms flashed green and edged toward the midline. This shows that bulls are steadily gaining ground.
On the flipside
Conversely, the RSI position below 50 shows that Binance Coin price strength is still within the bears’ grip, and chances of a pullback persist. Similarly, the AO was still in the negative to show bears still had the advantage.
Therefore, if seller power grows, BNB price could repel the immediate barricade at $256.2 and fall toward the critical support at $231.2. A break below this buyer congestion zone would see Binance Coin collect buy-side liquidity for bulls to scale another northbound attempt.
Nevertheless, the current outlook suggests Binance Coin could consolidate within the current zone and only break above the $256.2 level after building sufficient momentum. Therefore, investors still have time to acquire the altcoin and expect a break above once the RSI hits the midline at 50. This would be akin to what happened around January 4, highlighted in the daily chart above.
BNB Alternative
While Binance Coin coils up for a break above the immediate resistance, consider YPRED for the next high performance. This is the native token for the yPredict ecosystem, a leading AI crypto signals platform.
yPredict presents as the go-to crypto analytics tool backed by Artificial Intelligence. The platform premiered its presale offer, which has accumulated more than $2.51 million in stage six sales. The token is currently headed for the next fund target of $2.98 million and is poised to achieve it soon.
The platform provides cutting-edge features like automated chart pattern recognition and transactional data analysis for crypto and stocks. The platform’s first model is live and free, but only for a limited time.
yPredict’s first model is live and It’s available to use for free, for a limited time.
Link: https://t.co/vT15zTcmL1
Blog: https://t.co/m5tVkclzaO pic.twitter.com/SJwT7AAwlB— yPredict.ai (@yPredict_ai) June 15, 2023
Get valuable insights and predictive signals for informed decision-making on yPredict here.
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