BNB Price Recovery in Trouble as Binance Faces New Class-Action Lawsuit

2 months ago 33

BNB price will likely have trouble breaking a crucial barrier as the altcoin is pointing to several bearish factors.

The biggest of these factors is Binance and its founder getting sued by three crypto investors for their stolen assets.

Binance Is in Trouble

BNB’s price, despite its 7% rise in the last 48 hours, may fail to continue its uptrend. This is because three cryptocurrency investors have filed a class action lawsuit against Binance and its founder, Chengpang Zhao (CZ).

The lawsuit alleges that the investors faced losses due to Binance’s failure to prevent money laundering. According to a post from Bill Hughes, the court filing noted,

“…Binance was aware of and to some extent encouraged as its lucrative business model. Plaintiffs say this injured them as Binance was an essential part of the laundering, and constitutes illegal racketeering that violates the RICO statute…”

If the lawsuit goes to trial, it could be a big blow to the exchange, its native token, BNB, and its founder, CZ. CZ is already in prison for violating the Bank Secrecy Act, serving a four-month sentence that will end in September.

The change in tone among its investors is further impacting the BNB price. The negative funding rate shows that over the last 24 hours, BNB holders observed a shift in their sentiment, turning bearish.

This is most likely due to the altcoin inching closer to the famed resistance block. Thus, to benefit from the potential drawdown from this block, investors have begun placing short contracts.

BNB Price Prediction: New Old Barrier

BNB’s price is $561 at the time of writing, just below a key resistance block. Ranging from $575 to $619, this range has prevented a rally in BNB price since early March.

While the crypto asset has made multiple attempts to breach it, only one in June was successful, which led to the formation of a new all-time high at $721. Given that the bullish momentum is not strong at the moment, the BNB price will likely drop below $550.

Even if the breach of the lower limit at $575 is successful, the crypto asset will find trouble in closing above $600 and breaching $619. This will eventually result in a drawdown to $550.

The post BNB Price Recovery in Trouble as Binance Faces New Class-Action Lawsuit appeared first on BeInCrypto.

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