BNB price is likely to face difficulties in breaking through the important barrier as the altcoin points to a number of bearish factors.
The most important of these factors is that Binance and its founder have been sued by three crypto investors for stolen assets.
Binance in Trouble
The BNB price, despite rising 7% in the last 48 hours, may not continue its upward trend. This is due to three cryptocurrency investors filing a class action lawsuit against Binance and its founder Chengpang Zhao (CZ).
The lawsuit alleges that investors suffered losses due to Binance’s failure to prevent money laundering. According to Bill Hughes, the lawsuit states:
“…Binance knew and to some extent encouraged this as a profitable business model. Plaintiffs allege that this harmed them because Binance was integral to the money laundering and constituted an illegal racketeering activity in violation of RICO…”
If the lawsuit goes to trial, it could be a major blow to the exchange, its native token BNB, and its founder CZ. CZ is already in prison for violating the Bank Secrecy Act, serving a four-month sentence that ends in September.
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The change in tone among investors is further impacting the price of BNB. The negative funding rate shows that BNB holders have seen their sentiment shift over the past 24 hours, becoming bearish.
This is most likely due to the fact that the altcoin is slowly approaching the famous resistance block. So, in order to benefit from the potential drawdown from this block, investors have started placing short contracts.
BNB Price Prediction: New Old Barrier
The price of BNB is $561 at the time of writing, just below a key resistance block. The $575 to $619 range has kept BNB price from rising since early March.
Although the crypto asset has seen several hack attempts, only one in June was successful, which resulted in a new all-time high of $721. Given that the bullish momentum is weak at the moment, the BNB price is likely to fall below $550.
Read More: Binance Coin (BNB) Price Prediction 2024/2025/2030
Even if the breakout of the lower limit at $575 is successful, the crypto asset will have a hard time closing above $600 and breaking through $619. This will eventually lead to a drawdown to $550.
