As Binance’s CZ faces a potential jail sentence, the market sentiment surrounding BNB-USD shifts from fearful to bullish. While for the broader cryptocurrency market, it’s mostly a non-event, for BNB, it carries significant weight. Since the start of the week, BNB has nosedived by nearly -9%. However, when compared to the rest of the altcoin market and considering the FUD surrounding CZ, it’s holding up surprisingly well.
From Courtrooms to Meme Rooms: BNB’s Wild Ride
BNB’s latest drama stems from the resolution of Binance’s former CEO, Changpeng Zhao’s (CZ), legal situation. As part of a plea deal with U.S. Federal prosecutors, CZ faces a four-month stint in jail over serious charges, including violations of anti-money laundering laws. But here’s the twist: while CZ heads to prison, social chatter around BNB has taken a bullish turn. Why? Well, the fear, uncertainties and doubt (FUD) surrounding CZ’s fate has finally subsided.
And if you need evidence that Binance itself is all “business as usual,” BNB has a $1 million Meme Innovation contest going on. The contest is a full-blown battle royale for meme coin developers, with a hefty prize pool split across trading volume, market cap, and meme community engagement. Scheduled to run until May 9, this contest is a play to pump some serious creativity and volume into the meme coin market.
BNB Outperforms Peers
If you’ve written BNB off, then you’ve missed its outstanding performance thus far in 2024. It is up 76% for the year but well off its 106% gain. Like the majority of its peers, BNB remains stuck in a range for nearly one and a half months. From a technical analysis perspective, there is some slight hidden bullish divergence between price and the RSI. Hidden bullish divergence occurs when price makes higher lows, but the RSI makes lower lows.
BNB’s performance over the next few weeks may be decided soon. It’s trading near the bottom of the range as the RSI has moved between the first and second oversold levels in a bull market. Does this mean bulls are ready to take over? No – but the odds are the best they’ve been in weeks.
Don’t let crypto give you a run for your money. Track coin prices here
