Image default
Altcoin

Why is BNB price up today?


Key Takeaways:

  • Binance coin managed a 10% uptrend, retesting key support.
  • Will the token keep rising?
  • The exchange tried to cut a deal with the SEC. The negotiations could deliver a compromise on June 15.
Binance coin cryptocurrency on pile gold coins a lot of
Read CoinChapter.com on Read CoinChapter.com on Google NewsGoogle News

YEREVAN (CoinChapter.com) – Binance coin BNB jumped 10% in the previous 48 hours, reaching $247 on June 14. Notably, the short-term bullish correction came after the 28% plunge in the week ending June 12, triggered by the US Securities and Exchange Commission (SEC) crackdown.

BNB in a consolidation channel

The token has been trading within a consolidation channel since June 2022. The setup entails two parallel trendlines with a powerful mid-range. After the mentioned SEC-related price cascade, BNB price action retested the channel’s support, adding a bullish incentive for the short-term uptrend.

Notably, the mentioned setup does not provide insight into the BNB price action once the token breaks in either direction. However, it can be instrumental in determining short-term fluctuations.

Binance coin (BNB) daily price action. Source: TradingView.com

Moreover, the plunge resulted in an ‘oversold’ relative strength index (RSI: purple graph at the bottom). Typically, an RSI drop below the 30-70 ‘normal’ range is a gouge for a market entry point and indicates a possible uptick.

Also read: SEC vs Ripple: All Eyes On XRP Price Rally As Hinman Documents Become Public. 

But the real news behind the uptrend is noteworthy.

Is Binance selling its BTC stash?

As mentioned, after the SEC’s allegations against Binance, the BNB coin lost nearly 30% of its valuation in a week. To offset the damage, the exchange is allegedly unloading its Bitcoin stash. Several crypto analysts and sector commentators have agreed, calling Binance a “house of cards.”

Binance and CZ have been selling spot Bitcoin at an alarming rate to defend the BNB $220 liquidation waterfall. As spot Bitcoin is sold off, BNB is purchased, which defends the $220 liquidation but also caps the upside potential of Bitcoin.

noted one such analyst on Twitter.

Analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten have also accused Binance of intentionally manipulating the market to inflate the value of BNB artificially.

CZ denied the rumors. “Binance has not sold BTC or BNB. We even still have a bag of FTT. It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD.” tweeted the Binance CEO.

Binance to cut a deal with the SEC

Earlier in the week, the SEC pushed a motion to freeze all the assets on Binance.US. However, both parties agreed to work on a deal that avoids the total asset freeze.

On June 13, US District Judge Amy Berman Jackson said the two sides “aren’t that far apart” on ways to protect billions of dollars in customer funds without shutting the exchange down while the SEC’s lawsuit proceeds.

She referred them to a magistrate judge to work on a compromise agreement, which could arrive on June 15.

Earlier, Binance proposed a compromise that would include transferring US customer crypto assets to new wallets with new private keys that would be under the sole control of US-based officers at Binance.US. The platform saw it as an adequate response to the SEC’s request for an asset freeze.

As part of its proposal, the exchange also asked permission to keep paying employees and cover operating costs while pledging that no assets would be transferred or payments made to benefit any Binance entity without a judge’s order.

Possibly, the open window for a compromise between Binance and the SEC spurred the BNB bulls.judge’scoming sessions will show if the uptrend can last.

The post Why is BNB price up today? appeared first on CoinChapter.





Source link

Related posts

Pi Coin Drops 90% YTD with Pi Network’s Open Mainnet Launch Nowhere in Sight

Amorette Lepage

Binance Almost Bye-Byes Tainted Stablecoin BUSD to Make Room for Rivals

Amorette Lepage

Shiba Inu’s Shibarium Nears Public Launch, Promising Enhanced User…

Amorette Lepage

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy