Will BNB Price Hold $500 Support Amid Binance Nigeria Lawsuit Hearing?

Binance coin price plunged 2.46% to $519 ahead of the upcoming hearing against the Nigerian government. The broader market uncertainty and legal dramas have negatively impacted the BNB price recovery, as the daily chart shows a sideways trend since March 2024. Can buyers renew bullish momentum?

BNB Price Faces Uncertainty Amid Nigerian Legal Challenges

The BNB price reversal from the $600 resistance signals the continuation of its sideways. The buyer’s struggle to maintain sustainable recovery can be attributed to ongoing legal issues against the Nigerian government and other lawsuits.

On February 26, 2024, the Nigerian government arrested two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, with allegations of tax evasion and money laundering. Initially set for October 11, the trial has been expedited to September 2 due to defense requests.

Ahead of the hearing, Binance CEO Richard Teng refuted the Nigerian government’s claims that the crypto exchange earned $26 billion in revenue from its operations in the country in 2023. Teng clarified that the transaction volume for Binance in Nigeria was $21.6 billion, with actual revenues being significantly lower. He also dismissed the claim that Binance was responsible for the decline in Nigeria’s currency, stating that this assertion was not supported by facts.

The BNB price may hold its $500 support level if these clarifications positively influence the upcoming hearing. However, the current correction could be prolonged if the legal pressures continue.

Binance Coin Price Hints 17.5% Drop Before Major Support Test

BNB price analysis of the daily chart shows a sideways action resonating within the broadening wedge pattern. The two diverging trendlines indicate increasing uncertainty, which could drive a significant downtrend.

If the bearish momentum persists, the Binance coin price could plunge 17.5% bottom support trendline at $420. The potential retest is pivotal for crypto buyers as the prior triggered a 33% recovery.

If the support holds, the buyers could rechallenge the $600 resistance with a potential rally to $721. Currently, the BNB price seeks support at the 200-day EMA slope to prevent the anticipated fall.

On the contrary, if the Binance coin price breaks the wedge support trendline, the sellers could strengthen their grip for extended correction.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.