Binance Confronts Legal Challenges: Analysts Assess the Future of BNB

Binance, one of the leading global crypto exchanges, is currently navigating legal challenges. Despite the hurdles, market analyst Ali believes it can bear this storm even better. However, investors should watch for BinanceCoin (BNB) as the cryptocurrency experiences a descending triangle in its weekly chart, indicating a change in market dynamics.

Crypto analyst Ali has also marked the descending triangle pattern on the BNB weekly chart, which suggests a consolidation phase and a possible turn in direction. A descending triangle is a technical pattern with lower highs against the horizontal support. In the case of BNB, the triangle forms part of a tightening range of price action, with analysts eyeing for it to break above $260.

Despite facing legal challenges, #Binance might emerge more resilient. Still, keep an eye on #BinanceCoin as $BNB forms a descending triangle on the weekly chart.

Watch for a close above $260 to confirm a bullish #BNB breakout. Until then, it might be wise to hold steady! pic.twitter.com/Wal9CDRfiP

— Ali (@ali_charts) December 10, 2023

For investors, a hold above the $260 level could spell a bullish breakout, opening fresh upside for BinanceCoin. Nonetheless, until such confirmation is made, a cautious approach towards the next coming days is recommended.

Despite a 3.60% dip in the last 24 hours and a CoinMarketCap ranking of #4 with a market cap of $36 billion, Binance Coin has seen a 16/30 (53%) positive trend over the past month. With a 24-hour trading volume of $675 million, the cryptocurrency’s short-term future remains uncertain.

Furthermore, the Binance Coin price prediction from CoinCodex indicates that the digital asset will gain a slight increase of $268.64 by December 14, adding 11.88 points. However, indicators show a bearish environment as the Fear & Greed Index reads 74 when writing this article, signaling that the market is greedy.

Binance Under DOJ Scrutiny

Adding to Binance’s challenges, the United States Department of Justice (DOJ) recently revealed an expansive monitorship over the exchange’s operations. The unsealing compliance commitments on December 8 showed a substantial government oversight, drawing comments from John Reed Stark, a former Securities and Exchange Commission (SEC) official.

Breaking News: A Binance Double Whammy. 1) Newly Unsealed US DOJ Filings Could Mean the End of Binance; and 2) SEC Files Supplemental Pleading Against Binance, Strengthening the SEC Binance Lawsuit Exponentially

There’s been a flurry of newly released Binance-related filings… pic.twitter.com/igN2I9Y7cP

— John Reed Stark (@JohnReedStark) December 9, 2023

Stark branded the compliance commitments a “consulting firm’s wish list” and believed these obligations could shut down the platform. The 11-page document outlines Binance’s commitment to collaborate with authorities, providing them access to an extensive data set. Moreover, this includes information on former employees, agents, intermediaries, and business partners.

The criminal division of the DOJ will now monitor Binance’s activities. This includes overseeing money laundering, asset recovery, national security, counterintelligence, and export control. With the legalities in progress, an incremental uncertainty factor for Binance’s future emerges. It makes investors cautious for the coming weeks as the events unravel themselves.

Related Reading | BlackRock Warns of Bitcoin Security Risk in SEC’s Crosshairs