Why Binance Coin (BNB) Price Could Hit $700 after Changpang Zhao’s Prison Release

Binance (BNB) Price Gains $4B as US Authorities Release Changpeng Zhao from Prison

BNB price broke above $615 on the Sept 27, adding over $4 billion to its market cap within the last 5 days. Recent market reports link BNB 10% weekly timeframe gains to the early release of Binance ex CEO/Co-Founder Changpeng Zhao, previously scheduled for Sept 29.

Amid the latest $615 breakout derivatives market data shows BNB bear traders are actively scaling back on their SHORT  positions.

Could this propel BNB prices into another leg-up in the days ahead?

BNB Price Surges 5% on CZ’s Early Release

Binance, the world largest cryptocurrency exchanges has been caught in legal crosshairs with US regulators over the last few years.

The US SEC’s anti-money laundering and cyber crime charges against Binance came to a head in December 2023, when the exchange confirmed a guilty plea and agreement to pay fines in excess of $4 billion.

On April 30, US District Judge Richard Jones handed a four-month prison sentence to Binance CEO/Co-Founder Changpeng Zhao (CZ) in a Seattle court.

Court documents show that CZ’s charges stemmed from allegations of failure to implement an effective AML framework at Binance, potentially enabling cybercriminal and terrorist activities on the trading platform.

According to the sentencing and official filings, CZ is scheduled to be released on Sunday, Sept 29. However, market reports hint that CZ release date could brought forward to Friday Sept 27, due to federal prison guidelines on weekend releases.

Since the rumors hit the newsreels around Sept 20, Binance native coin, BNB, and other assets strategically back by the exchange have witnessed an increase in market demand.

The chart above shows that BNB price opened trading for the week around $578 on Sunday Sept 22. But as news of CZ impending early release spread wider, BNB price witnessed a 2% surge on Friday Sept 27.

Changpeng Zhao is Banned for Life from Managing Binance

As part of his plea deal, CZ received a lifetime ban from managing Binance or any publicly traded company. This lifetime prohibition is tied to a $4.3 billion settlement with U.S. authorities, which involved Zhao immediately stepping down as CEO, with Richard Teng assuming the role since December 2023.

Although Zhao is barred from managerial duties, he retains his rights as Binance’s largest shareholder.

Unsurprisingly, many market enthusiasts anticipate that CZ’s early release could spark bullish impact on the markets, particularly BNB and other prominent tokens linked to linked to the Binance’s BNB chain ecosystem.

BNB Price Forecast: Bulls Target $700 Breakout amid CZ’s Release

BNB’s recent price surge reflects growing bullish sentiment, with its value now at $609.56, following a 5-day rally gaining 4.49%. This uptrend can be attributed to the rumors of Changpeng Zhao’s early release, adding $4 billion to BNB’s market cap within the same period.

The Relative Strength Index (RSI) has reached 67.14, indicating growing buying pressure but still below overbought territory, suggesting room for further upward movement.

The key support level lies at $575, a zone that previously withstood bearish attempts, while $615 has emerged as immediate resistance, as shown in the latest candle patterns. A sustained break above $615 could open the door for bulls to target the next psychological resistance of $700.

Given the RSI’s current trajectory, which hints at a healthy bullish momentum, and the absence of significant short positions, BNB may continue its upward trajectory. The recent breakout above the yellow consolidation zone indicates a possible trend reversal, solidifying bullish sentiment around BNB’s price action.

Traders should watch for a confirmation close above $615 in the coming days to further validate the potential for a $700 breakout.