Binance Coin (BNB), the native cryptocurrency of the Binance exchange, has witnessed a notable spike of nearly 9% from yesterday, November 20. This uptick is closely linked to the ongoing negotiations between Binance Holdings and the US Justice Department.
At the heart of these talks is the resolution of multiple lawsuits, with the Justice Department reportedly seeking a substantial sum exceeding $4 billion in fines from the crypto giant. The legal discussions have also brought attention to Binance‘s founder, Changpeng Zhao, who may face criminal charges in the United States.
As the crypto community watches these developments, the potential announcement of a deal by the end of the month looms. Such a settlement could represent one of the largest penalties in a criminal case involving cryptocurrency and will undoubtedly impact the price of BNB.
Binance coin has risen from its October 12 low of $204, its last support zone point since the all-time high. Today, November 21, the price spiked to $270, marking a 31% recovery. It managed to go above its July high, making the first higher one since the beginning of February. It is still on an upward trajectory, eyeing its next resistance at $285, but that isn’t its most significant.
Since June last year, the price of BNB has been in a horizontal range with an upper bound of $360 and its lower of $200. October’s low was a bounce from this support zone, and with the previous descending move being a five-wave impulse, there is a high chance that it started its bull phase.
If this is true, then the price is set to break the $360 resistance, but that might not come in this go. We have likely seen only the first sub-wave of the larger move that a correction for the first higher low should follow.
We can see another advancement for its most significant breakout only after establishing higher support. This is why we would be now looking for the price to maintain trading above $232 to turn undoubtedly bullish in the long-term.
In the case that it continues moving down below $230, which is the optimal Fibonacci level for the expected correction, it would likely mean that the price is headed for a new bear market low.
This is why it is crucial to see what happens in this area to reliably know if the price has the potential to start its long-term bull phase.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.