Can BNB Hold $500 Amid Binance Nigeria Lawsuit?

BNB Price Faces Uncertainty Amid Nigerian Legal Challenges

The recent price reversal of BNB from the $600 resistance level indicates a continued sideways movement. The struggle for buyers to achieve a sustainable recovery can be attributed to the ongoing legal challenges against Binance by the Nigerian government and other lawsuits.

On February 26, 2024, the Nigerian government arrested two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, on charges of tax evasion and money laundering. Initially scheduled for October 11, the trial has been expedited to September 2 following defense requests.

In response to these allegations, Binance CEO Richard Teng has refuted the Nigerian government’s claims that the crypto exchange earned $26 billion from operations in the country in 2023. Teng clarified that Binance’s transaction volume in Nigeria was $21.6 billion, with actual revenues being much lower. He also dismissed claims that Binance contributed to the decline of Nigeria’s currency, stating that these assertions were unfounded.

The BNB price may maintain its $500 support level if these clarifications positively impact the upcoming hearing. However, continued legal pressures could prolong the current correction.

Binance Coin Price Hints at 17.5% Drop Before Major Support Test

An analysis of the daily chart for BNB reveals a sideways movement within a broadening wedge pattern. This pattern, characterized by diverging trendlines, suggests increasing uncertainty which could lead to a significant downtrend.

If bearish momentum persists, BNB price could experience a 17.5% drop, testing the bottom support trendline at $420. This potential retest is crucial for crypto buyers, as previous similar scenarios triggered a 33% recovery.

Should the support level hold, buyers might attempt to challenge the $600 resistance again, with a potential rally reaching up to $721. Currently, the BNB price is seeking support at the 200-day EMA slope to prevent the anticipated decline.

Conclusion

Binance Coin (BNB) faces significant challenges as it navigates legal hurdles and market volatility. The outcome of the upcoming hearing and the ability of BNB to maintain key support levels will be critical in determining its near-term price trajectory. Investors should stay informed and monitor market developments closely.