For a period of three months in 2023, it looked as though Binance’s exchange coin $BNB would take a fall that could have wiped out more than three quarters of its value. Today, $BNB is trading at only 13% below its all-time high. A remarkable recovery has taken place.
From around August 2023, and leading up to the absolutely massive fine of $4.3 billion imposed on Binance by the US Department of Justice (DOJ) in November 2023, $BNB hovered at a price of just above $200. If price had fallen below this level, a catastrophic plunge to under $30 could have ensued.
US authorities turn up the heat on Binance
The US government and its financial watchdog, the Securities and Exchange Commission (SEC) had been eyeing Binance and its CEO of Chinese extraction Chang Peng Zhao (CZ) for quite some time. The Biden administration, with its anti-crypto bias, had been looking to pull this lynch pin of crypto down, and it ramped up the heat on the beleaguered exchange and its CEO.
Finally, the exchange caved in, and CZ stepped down as CEO and flew to the US to plead guilty to various charges of malpractice by what was then the largest crypto exchange by trading volume in the world.
$BNB price was ready to fall off a cliff
Source: Coingecko/Trading View
The weekly chart above puts into perspective just how desperate the situation was for $BNB through the second half of 2023, and especially in the three months from August to October when the exchange finally agreed to settle and pay a staggering $4.3 billion fine levied by the DOJ.
It can be seen that if the price had dropped under $200, it would have been akin to $BNB falling off a cliff, the next support being all the way down at $30, a simply huge 85% reversal.
However, apart from an 18% correction when news broke of the settlement, and then another correction of 14.6% going into 2024, and one last pullback of 15.5% in March, the price has recovered strongly over the first quarter of 2024, to now even be within reach of the all-time high of $691 set back in May 2021.
All-time high in sight – not a bad recovery
Source: Coingecko/Trading View
Zooming into the daily time frame, $BNB is inside an upward sloping wedge, normally a bearish pattern, but if $BNB is able to break this to the upside, this would become incredibly bullish. The resistance at $632 also needs to be broken, and there is one more resistance level at around $656. Breaking through both these levels would leave the path open to a new all-time high beyond $690 – not a bad recovery all things considered.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
