- Binance Coin (BNB) steady
- The road to compliance demands aligning with regulators’ needs.
The loss of US clients is a blow to Binance and BNB. However, the decision will be beneficial in the long term as Binance restructure, leaning towards regulatory compliance. From the charts, BNB is stable. Nonetheless, it is the second worst performing digital asset in the top 10.
Binance Coin Price Analysis
There is a transition going on in Binance. Known for their aggressive expansions, Changpeng Zhao and team appear to be taking a step back. Days after announcing their restrictions for US clients, the exchange plans to be more regulatory compliant.
Critics reckon that they are under pressure from US authorities. As they budge, launching a US-based exchange in partnership with an intermediary, it is likely that most of their original customers, shifting funds before Sep 12, will bail out.
For now, there is a 90-day window where US customers will move their funds to other exchanges or third-party wallets. Through BAM Trading Services and Koi Trading, Binance US, will launch before the expiry of this withdrawal window. Although Changpeng Zhao, in an Ask Me Anything session, absolved himself from any form of participation in the new exchange.
Meanwhile, BAM Trading services is FinCEN registered. On the other hand, Koi Trading has links to the former Senior Director of Engineering at Huobi Global, Hao Chen. In turn, Chen is the CEO of Koi Trading, who lists Binance as one of their investors. Chen was part of the team that launched Huobi US. Perhaps because of his experience, Binance is now seeking his services as they plan to roll out the new platform most likely without Binance Coin (BNB).
Aside from Cardano (ADA), BNB is the second worst performing digital asset in the top 10. Even though it is stable in the last week and day, the coin is under immense sell pressure. Losing US customers who accounted for more than 60 percent of the exchange’s traffic will have a negative bearing on BNB.
Presently, June 14 bear bar anchors this trade plan, is extensive and within its trade range, containing price action of the last six days. From the chart, BNB bulls are capped by May highs of $38. Conversely, floors are at $29, and any drop below this level with above average participation could see BNB slide back to $25 and later $17 in a retest.
As aforementioned, June 14 bear bar leads this trade plan. Apart from being wide-ranging, it has high trading volumes of 4.9 million against 2.7 million. Therefore, any break and close above $38 or fall below $29 must be with high participation surpassing 4.9 million. That will confirm or nullify this trade plan’s stance.
Chart courtesy of Trading View. Image Courtesy of Shutterstock