Changpeng Zhao’s Resignation Impact on Binance Coin Price
The founder and CEO of Binance, Changpeng Zhao (CZ), recently stepped down from his role after pleading guilty to violating the United States anti-money laundering guidelines, bringing about some repercussions for Binance Coin (BNB) which is down nearly 10% to trade at $234.
Although Binance is facing charges filed by the Department of Justice (DoJ) in the US, CZ and the exchange have reached an agreement with the DoJ to drop the charges in exchange for a $4.3 billion settlement with CZ being barred from holding an executive position at the company. On the other hand, the settlement does not cover the lawsuit filed by the Securities and Exchange Commission (SEC).
The news of CZ’s exit did not have a significant impact on most cryptocurrencies apart from Binance Coin, as support at $225 affirmed the bullish outlook for BNB.
Technical Analysis and Price Prediction for Binance Coin
As at Wednesday during the US session, Binance Coin price was trading at $232, with a potential recovery anticipated to reinforce the bullish trend.
For BNB to resume its upward trend, it needs to face and overcome resistance at the 23.6% Fibonacci retracement level and the descending trendline. Failure to do so could lead to more losses, with support at $225 being a critical level to watch.
As a trader, you should pay close attention to how Binance Coin price responds to the aftermath of CZ’s ouster. A significant break below the support at $225 could jeopardize the $200 level, while recovery above the 23.6% Fibo would encourage investors and pave the way for the next rally to $270 and $300.
CZ’s Departure Impact on Altcoins and BTC
The news of CZ’s resignation led to Bitcoin price dropping below $37,000 to trade at $36,569. Altcoins, especially Binance Coin, and Ethereum have seen some volatility but Binance Coin was the most affected.
Despite the upheaval surrounding CZ and Binance, the bullish outlook for altcoins in Q4 is expected to continue, and Binance Coin price might rebound as the headwinds from CZ and Binance begin to fade.
Hot Take
In the wake of Changpeng Zhao’s exit, it appears that most cryptocurrencies have managed to weather the storm, with the exception of Binance Coin. Nevertheless, the technical analysis shows that BNB has a potential for recovery if it manages to overcome the resistance levels. The bullish outlook remains for altcoins in Q4, suggesting that Binance Coin price might rebound as the impact of CZ’s departure fades.
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