BNB The altcoin’s price is likely to struggle to break through a significant resistance as the altcoin points to several bearish factors. The biggest of these factors is that Binance and its founder are being sued by three crypto investors over stolen assets. Despite the fact that BNB’s price has increased by 7% in the last 48 hours, it may not be able to sustain its upward trend. This is because three crypto investors have filed a class-action lawsuit against Binance and its founder Chengpang Zhao (CZ).
What’s Happening on the BNB Front?
The case in question was filed by investors Binance’s claims it faces losses due to its failure to prevent money laundering. According to a post by Bill Hughes, the court filing stated: A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
“Binance was aware of its profitable business model and, to some extent, encouraged it. The plaintiffs say this harmed them because Binance was a significant part of the money laundering and constituted an illegal racket in violation of the RICO statute.”
If the case goes to trial, it could deal a major blow to the exchange, its native token BNB and its founder, CZ. CZ is currently in jail for violating the Bank Secrecy Act, serving a four-month sentence that ends in September.
Change in sentiment among investors BNB further affecting its price. The negative funding rate indicates that BNB holders have observed a change in sentiment in the last 24 hours and have become bearish. This is most likely due to the altcoin approaching the famous resistance block. Therefore, investors have started placing short contracts to benefit from a possible drop from this block.
BNB Chart Analysis
BNB’s At press time, the price was $561, just below a major resistance block. This range, which ranged from $575 to $619, has prevented a rally in BNB’s price since early March. While BNB has made multiple attempts to break above this level, only one in June was successful, leading to a new all-time high of $721.
Given that the bullish momentum is not strong at the moment, the BNB price is likely to drop below $550. Even if the lower boundary at $575 is broken, the crypto asset may struggle to close above $600 and surpass $619. This will eventually lead to a drop to $550.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
