Rejecting Binance’s appeal puts BNB at risk?
The United States Supreme Court has rejected the appeal filed by the Binance exchange last December. This decision notably caused strong volatility in the price of Binance Coin (BNB), the platform’s native cryptocurrency.
Indeed, Coinglass data reveals that in the 24 hours following the announcement, nearly 2 million dollars long positions in BNB were liquidated. This caused a sharp decline in the price of BNB, which hit a multi-week low at 660 $, before going back to 698 $ at the time of writing.
Even so, this is also consistent with the market drop and Bitcoin’s rebound on the 88 800 dollarsclose to the average purchase price of STH (short term holders). It is therefore still difficult to perceive how the market will react to this new rejection.
The stakes of the lawsuit against Binance
As a reminder, the lawsuit accuses Binance of offering securities without being registered as an exchange platform under US laws. The Supreme Court once again rejected Binance’s appeal with the main argument that their headquarters were not located in the USA.
It was in March 2022 that the Manhattan Court of Appeal relaunched the case. It ruled that despite not having a headquarters in the United States, Binance remained subject to securities laws because the servers allowing the purchase of tokens used servers based in the US.
The exchange therefore decided to do call last December. According to them, technological innovations open up investors to invest in foreign markets. Representatives from Binance said:
“Where such opportunities were once limited to those who could travel abroad, work with international investment firms or set up offshore entities, the Internet has helped provide the same access to investors with fewer resources. »
Uncertain outlook for BNB
For now, BNB has rebounded well following the announcement, recording a +5,97% since its fall to 660 dollars. During the last 24 hours, $440,000 worth of shorts were liquidated for $70,000 in longs, according to Coinglass. Since the liquidation of shorts turns into buying orders, BNB could accelerate in the event of a rise in BTC.
However, the increase in the number of shorts reveals somewhat negative investor sentiment. For example, the Chaikin Money Flow reveals this bearish sentiment and lack of liquidity inflow. With a negative CMF at -0,02 At the time of writing, despite the 5% price increase, BNB could experience complicated and volatile days ahead.
Nevertheless, BNB still moves in a symmetrical triangle pattern. A bullish crossing of this configuration at 746 dollars (+6%), with a return above the next Fibonacci level at 0.5 (707 $)could reverse the trend. Conversely, a bearish break of support below 695 dollars would cancel the bullish pattern, at least in the short term.
To conclude, it is obvious that the SEC leadership change expected in the coming days could revive the bullish momentum of BNB. The announced departure of Gary Gensler could indeed benefit tokens having previously been in the sights of the crypto policeman.
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