- Binance’s BNB coin nosedived 15% as the DOJ settlement unfolds.
- Binance was ordered to pay $4.3bn in penalties as the former CEO resigned.
- BNB hit the hardest among altcoins as Santiment paints a bounce-back plot.
The world’s leading cryptocurrency exchange Binance has been fighting prolonged legal battles with several top legal authorities, most of them coming from the United States.
After yesterday’s news of Binance settling for $4.3bn with the United States Department of Justice (DOJ), CEO and co-founder Changpeng ‘CZ’ Zhao has officially stepped down from the leadership position.
Naturally, the news invoked confusion in the crypto markets, taking down Binance’s native BNB Coin (BNB) by 15% almost instantaneously after the breaking news surfaced online.
See Also: BNB Price Shows Signs of Life But $250 Is The Key To More Upsides
The price move sent BNB below its crucial support levels at $230 in the early hours of Wednesday, but the altcoin managed to bounce back to trade at $232.95% at the time of the publication.
#BNB volatility exploded as US dropped the hammer:
🔸 Price crashed 15% after DoJ news
🔸 CZ resigned
🔸 Binance is solvent & has a new CEO
🔸 Key support at $230 & $200Bias is bearish, but I am optimistic so long $200 holds.
More in my 1 min TA video, like & follow! 💪 pic.twitter.com/37R5veF9Ib
— Duo Nine ⚡ YCC (@DU09BTC) November 22, 2023
Largest Retracement of the Year: Can BNB Price Recover?
After the criminal case settlement news, cryptocurrency traders have expressed certain distrust in Binance’s native BNB.
According to the blockchain analytics platform Santiment, both social dominance and trading volume have exploded ever since the news hit, causing over $1 billion of outflows from the largest crypto exchange.
In contrast, Santiment points to a scenario where BNB is likely to bounce back in case of a quick reputational recovery for Binance. In further detail, the surging social media dominance could be turned into a strong foundation for BNB’s rebound rally.
On top of that, Santiment claims that new short position placements could set off a price trend reversal.
At press time, BNB Coin (BNB) is trading at $233 with a 9% steep decline in the last 24 hours. Despite the daily downswing, BNB is still up 6.5% in monthly terms and currently dominates 2.482% of the wider crypto market.
However, according to crypto trader Cryptadamus, a more pessimistic scenario below $217 would eliminate $200 million in long positions, opening a potential price freefall.
🚨 reminder that there is $200 million that will theoretically be auto-liquidated should the price of Binance's $BNB token hit $217.
it's fallen 13% to $229 right now but someone seems really committed to holding the line… cc @BobEUnlimited pic.twitter.com/VQAXZkO6d9
— ⚯ M Cryptadamus ⚯ | @[email protected] (@Cryptadamist) November 22, 2023
Ultimately, while BNB market value highly depends on trader sentiment toward Binance, $BNB has so far sustained key support at $230.
📉 #BinanceCoin has understandably been among the #altcoins hit the hardest on news of @cz_binance stepping down as CEO. But if a quick reputation recovery happens for #crypto's #1 exchange, a $BNB bounce would be likely based on this level of trader #FUD. https://t.co/WrA9EfUj7o pic.twitter.com/WxgHbjSOUm
— Santiment (@santimentfeed) November 22, 2023
It was noted that some crypto traders are swapping Binance’s BNB for the fallen FTX exchange’s native token (FTT), causing a pump for the controversial token.
See Also: FTX Token Skyrockets Over 40% As Binance Faces Legal Battle
📊 Although many see the #Binance news as the main culprit for one of the biggest retraces of the year, the fact of the matter is that #altcoins had already seeing shrinking market caps. Interestingly, it appears some traders are swapping their $BNB for @FTX_Official's $FTT. 🤔 pic.twitter.com/4eWvWp5kOc
— Santiment (@santimentfeed) November 22, 2023
Hence, Binance’s troubles had pushed the bankrupt FTX’s FTT up 38.3% in the last 24 hours, as the leading exchange continues to deal with huge outflows.
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