As the broader cryptocurrency market experienced a bullish pressure, Binance Coin ($BNB) surged to a new all-time high record. In doing so, it surpassed the price barrier of $710, with active trading volumes suggesting the upward trend might continue.
This rally follows a period of flat performance for the coin where it struggled at around $580. Now entering a price discovery phase, $BNB is expected to move towards four-digit prices.
Interestingly, $BNB’s rally also comes shortly after its former CEO Changpeng “CZ” Zhao began serving a four-month sentence.
On 3 June, Zhao reported to a federal prison in California for violating the Bank Secrecy Act (BSA) by failing to implement an adequate Know-Your-Customer (KYC) program at the world’s largest cryptocurrency exchange. The Canadian national had pleaded guilty to the same back in November last year.
Legal challenges and market impact
$BNB has lagged behind other cryptocurrencies during the 2024 bull run, likely due to Binance’s legal issues. The company faces challenges in various jurisdictions, including Nigeria, the Philippines, and the US.
In November, Binance reached a $4.3 billion settlement with the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC). Zhao, who is also the company’s founder, pleaded guilty to violating US anti-money laundering laws and stepped down as CEO. This settlement ended long-standing US investigations into Binance over issues like sanctions violations.
However, despite these regulatory problems and competition from other crypto assets, $BNB has surged nearly $100 in the past day. The coin also managed to maintain its support above $200, despite months of sideways movement and diminished use cases, thereby building a reputation as a relatively stable asset.
$BNB now remains a key asset for trading pairs and liquidity pools, and has grown in value with new money inflows. The open interest in the coin has now doubled since 3 June.
As of writing, the crypto market also appeared ready to resume its bullish momentum after a period of stagnation post-halving. Bitcoin ($BTC) reclaimed the $71,000 mark on Tuesday. Other major cryptocurrencies, including Toncoin ($TON), Uniswap ($UNI), and Floki Inu ($FLOKI), also saw significant gains, with $FLOKI rising by 30% in the last 24 hours.
Chart analysis and future outlook
$BNB underwent a consolidation phase after a bullish start to the year, fluctuating between $568 and $635. This period was marked by significant price volatility.
However, the 50-day exponential moving average (EMA) has consistently supported $BNB, suggesting a positive price outlook. Its recent gains coincided with Bitcoin’s rise past $71,000, which is $BTC’s highest since 21 May.
After trading at lows of $592 on 1 June, $BNB has now outperformed other top 10 coins by market cap. Its market cap has hit $110 billion, placing it fourth overall behind $USDT, Ethereum ($ETH), and Bitcoin. It’s 24-hour trading volume reached $3.5 billion was well.
$BNB’s ongoing upward momentum also aligned with a resurgence in community sentiment towards the Binance exchange. The platform’s Launchpool has been particularly popular, allowing $BNB holders to acquire new tokens like the hot Notcoin ($NOT).
According to TradingView, the coin has jumped by about 16% in the past seven days. The daily chart indicated a breakout from the ascending triangle, with the Relative Strength Index (RSI) in the overbought zone but not overextended. The Moving Average Convergence/Divergence (MACD) indicator also suggested continued buy-side pressure.
Currently, $BNB is testing a critical resistance level at around $710. A break to $750 could encourage bulls, making analysts optimistic about $BNB’s price outlook.
