BNB Bulls to Target $250 Despite Intensifying Regulatory Scrutiny

Key Insights:

• On Friday, BNB joined the broader market in the positive territory, gaining 1.49% to end the day at $244.6.
• SEC v Binance case-related news and the SEC approving a BTC ETF supported a bullish session.
• However, the technical indicators remained bearish, signaling a return to sub-$235.

On Friday, binance coin (BNB) gained 1.49%. Partially reversing a 3.17% loss from Thursday, BNB ended the day at $244.6. Despite the bullish session, BNB fell short of the $250 handle.

A mixed start to the day saw BNB fall to an early morning low of $239.9. Steering clear of the First Major Support Level (S1) at $235, BNB rose to a late afternoon high of $249.7. However, falling short of the First Major Resistance Level (R1) at $252, BNB eased back to end the day at $244.6.

Binance Activity Floods the Crypto News Wires

On Friday, Binance.US announced the resolution to the USD withdrawal issue, saying,

“We’re pleased to share that as of today, we have worked with our banking partners to successfully resolve nearly all delayed USD withdrawal requests.”

Binance CEO CZ shared the news, saying,

“Binance.US resolves USD withdrawal issue but warns it won’t last long.”

The CZ comment came in response to Binance.US warning they expect their banking partners to discontinue the USD withdrawal service soon.

While Binance.US provided users with a short-term fix, Belgium’s Financial Services and Markets Authority (FSMA) issued Binance with an order to cease crypto services in Belgium, saying,

“The FSMA has noted that Binance is offering and providing exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services, from countries that are not members of the European Economic Area. The FSMA has therefore ordered Binance to cease, with immediate effect, offering or providing any and all such services in Belgium.”

While Binance faces increased scrutiny in Europe, the SEC case against Binance.US, Binance, and CZ will remain a focal point. On Friday, news hit the wires of Binance adding Kendall Day, a former US Department of Justice prosecutor, to its legal team to face off against the SEC.

Earlier this month, Binance added George Canellos to its defense team. Canellos is a former Chief of the Major Crimes Unit in the US Attorney’s Office for the Southern District of New York, former head of the SEC’s New York Office, and former SEC Enforcement Division co-director.

SEC ETF Approval Delivers Crypto Market Support

While Binance continued to face lawmaker scrutiny, the SEC inadvertently provided BNB price support.

On Friday, the SEC approved the Volatility Shares Trust 2x Bitcoin Strategy ETF, fueling a mid-afternoon breakout. The 2x Bitcoin Strategy ETF seeks two times the excess return of the S&P CME Bitcoin Futures daily Roll Index daily and will launch next week.

The Day Ahead

It is a quiet day ahead, with no US economic indicators to provide direction. The lack of external market forces leaves BNB in the hands of the crypto news wires.

While SEC v Binance-related news will continue to move the dial, regulatory chatter from other jurisdictions also needs consideration.

However, investors should monitor SEC v Ripple case-related news. A Ripple victory would be a bullish outcome for BNB and the broader crypto market.

Binance (BNB) Price Action

This morning, BNB was up 0.65% to $246.2. A range-bound start to the day saw BNB fall to an early low of $243.5 before rising to a high of $246.6.

BNB Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BNB sat above the 50-day EMA ($246). The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, sending bearish signals.

A hold above the 50-day EMA ($246) would support a move through R1 ($250) and the 100-day EMA (252) to target R2 ($255). However, failure to move through the 50-day EMA ($246) would leave S1 ($240) in view.

Resistance & Support Levels