The resignation of Changpeng Zhao (CZ), the founder and CEO of Binance, the largest cryptocurrency exchange by volume sent shockwaves across the market but most cryptos appear to have stayed buoyant apart from Binance Coin (BNB), which is down nearly 10% to trade at $234.
Is Changpeng Zhao’s Exit From From Binance Bullish or Bearish?
As reported, Zhao, commonly referred to as ‘CZ’ in the crypto realm, resigned from the exchange as CEO after pleading guilty to violating the United States anti-money laundering guidelines.
CZ and Binance are facing charges filed by the Department of Justice (DoJ) and other agencies in the US. After appearing before a Seattle federal court on Tuesday, CZ pleaded guilty amid an understanding with the DoJ to drop the charges on Binance.
The exchange is expected to pay $4.3 billion as a settlement for the charges amid other conditions such as CZ not being allowed to hold an executive position at the firm.
While the settlement will put an end to the issues Binance has with the Commodity Futures and Trading Commission (CFTC), it does not extend to cover the lawsuit filed by the Securities and Exchange Commission (SEC).
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is…
— CZ 🔶 Binance (@cz_binance) November 21, 2023
Meanwhile, cryptocurrencies across the board have impressively weathered the news, amid fears that the gains accrued since early October could be wiped out. Although Binance Coin plunged from highs around $270, support at $225 affirmed the bullish outlook.
A recovery is anticipated with Binance Coin price trading at $232 on Wednesday during the US session. Movement above an immediate confluence level formed by the 50-day Exponential Moving Average (EMA) (red) and the 100-day EMA (blue) would assert the bulls’ presence and prop BNB for another sharp move back to $270.
Subsequently, BNB price will need to successfully face resistance at the 23.6% Fibonacci retracement level and the descending trendline to uphold the uptrend. Gains above $270 would affirm the potential move above $300.
On the other hand, the Moving Average Convergence Divergence (MACD) indicator’s technical position reveals an overhanging bearish cloud that could lead to more losses if bulls lose support at $225.
While the sell signal appeared around mid-November, the dramatic developments around the exchange CZ built from the ground up worsened the situation.
Traders should be on the lookout for how Binance Coin price responds to the aftermath of CZ’s ouster. A break below support at $225 could put the $200 level in grave danger. On the upside, recovery above the 23.6% Fibo would encourage investors to stay put while anticipating the next rally to $270 and $300.
Recommended for you: Binance Whale Accumulates 2800 BNB Amid Money Laundering Probe
Is CZ’s Outster From Binance Bullish or Bearish For Altcoins
Bitcoin price abandoned the challenge at $38,000 and dropped below $37,000 to trade at $36,569 at the time of writing. Despite the massive outflows from Binance, declines were significantly minimized.
As for altcoins, Binance Coin was the most hit by the news of CZ leaving the exchange and pleading guide to violating the US anti-money laundering rules. Ethereum hung on to support at $2,000 showing resilience among investors while other altcoins suffered minor dips compared to other sell-offs caused by Binance in the past.
📊 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
The bullish outlook in Q4 is expected to carry on as the headwinds due to CZ and Binance fade. Binance Coin price could make a larger rebound, especially with investors believing that the new CEO of the exchange, Richard Teng is fit to continue Binance’s trendsetting culture.
Related Articles
- Whale Dumps 27 Mln XRP To CEX As Price Nosedives Below $0.6
- Crypto Prices Today: Market Slips As BTC, CAKE, & Pepe Coin Decline After FOMC Minutes
- Chainlink Whales In Strong Accumulation Mode, LINK Price Rally to Continue
- Analyst Predicts Ethereum ETF to Trigger Major ETH Market Moves
- Genesis Creditors to Receive 97% Payout by May Following Court Nod
- Terra Luna Classic Community Votes on Reactivating IBC, LUNC Price to Rally?
- US House to Vote on Two Landmark Crypto Bills Next Week
- WIF Selloff Alert: Dogwifhat Tumbles On Multiple Factors
- Shiba Inu Price Analysis Hints 35% Upside as Buyers Break 50-Day Consolidation
- Solana Price Prediction: Can SOL Surpass the $200 Milestone By End Of This Weekend?
- Ethereum Price Analysis: ETH Sees End-of-Correction With This Resistance Breakout
- Turn $1 Into $100 This Week With 3 Altcoins To Buy
- Crypto Market Analysis 18/5: Will Bitcoin Regain $70000 this Weekend?
