Binance Coin (BNB/USD) price formed a golden cross pattern after the latest news of a settlement with American regulators. BNB rose to a high of $328, which was much higher than this week’s low of $284. It has risen by more than 45% from the lowest point this year.
Binance to settle with the SEC
Binance has made two major headlines this week. The most important news was that New York regulators ordered Paxos to stop minting new BUSD stablecoins. This was important since BUSD is mostly used in Binance DeFi and NFT ecosystems.
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According to media reports, the regulators made the order in response to a complaint by Circle, the creator of USD Coin. Paxos has vowed to fight the ban in court. Therefore, BNB price dropped as the volume of withdrawals from Binance increased. Data compiled by DeFi Llama shows that Binance has had over $380 million in outflows in the past 7 days.
The BNB Chain was also overtaken by Tron to become the third-biggest player in the DeFi industry. In BNB terms, the total value locked (TVL) in the ecosystem has plunged to 15.6 billion, which is close to its lowest point in March 2021.
The other important Binance news is that the company is nearing a settlement with the Securities and Exchange Commission (SEC). The SEC has been facing numerous investigations in the US. According to the WSJ, the firm’s chief strategy officer said that he expects to reach a settlement soon.
The SEC accused Binance of offering crypto products to Americans without following the law. It has also been accused of lax anti-money laundering (AML) violations. Therefore, the BNB price rose because a settlement is a better alternative to a lengthy litigation.
The news of the settlement pushed crypto prices significantly higher on Thursday. Bitcoin price neared the resistance point of $25,000 while the total market cap of coins jumped to over $1.1 trillion.
Binance Coin price prediction
The BNB coin price suddenly woke up after the important news on Binance. As it rose, it moved above the key resistance point at $317, the highest point on November 27. It has also formed a golden cross pattern, which is usually a bullish sign. The coin is now approaching the important resistance point at $335 (Feb 6 and August 10 high).
Therefore, there is a possibility that the Binance Coin price will continue soaring as buyers target the key resistance point of $350.
Source: https://invezz.com/news/2023/02/16/binance-coin-forms-golden-cross-amid-sec-settlement-hopes/