Binance Coin (BNB) Dips 2.46% to $519 Amid Legal Uncertainty in Nigeria

Binance Coin (BNB) Dips 2.46% to $519 Amid Legal Uncertainty in Nigeria

The price of Binance Coin (BNB) has dropped 2.46% to $519 ahead of a crucial legal hearing against the Nigerian government. Ongoing market uncertainty and legal challenges have stifled BNB’s recovery, as the daily chart reveals a sideways trend that has persisted since March 2024. The key question remains: Can buyers reignite a bullish momentum?

BNB Price Uncertainty Grows Amid Nigerian Legal Battle

The recent pullback from the $600 resistance level highlights the continuation of BNB’s sideways movement. Buyers’ attempts to achieve a sustainable recovery have been hampered by the ongoing legal disputes with the Nigerian government and other pending lawsuits.

On February 26, 2024, the Nigerian government arrested two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, on charges of tax evasion and money laundering. Initially scheduled for October 11, the trial date has been moved up to September 2 at the request of the defense.

In anticipation of the hearing, Binance CEO Richard Teng has refuted the Nigerian government’s claims that the crypto exchange generated $26 billion in revenue from its Nigerian operations in 2023. Teng clarified that Binance’s transaction volume in Nigeria was $21.6 billion, with actual revenues being significantly lower. He also rejected the accusation that Binance was responsible for the depreciation of Nigeria’s currency, calling the claim baseless.

The $500 support level could hold if these clarifications positively sway the outcome of the hearing. However, if the legal pressure persists, the current price correction may continue.

BNB Price Analysis: Potential 17.5% Drop Looms

A detailed analysis of BNB’s daily chart reveals a sideways pattern within a broadening wedge formation. The two diverging trendlines signal increasing uncertainty, which could lead to a significant downtrend.

If bearish momentum continues, BNB could face a 17.5% drop, potentially testing the bottom support trendline at $420. This retest is critical for crypto buyers, as the last time this level was tested, it triggered a 33% recovery.

Should the support hold, buyers may once again target the $600 resistance, with a possible rally extending to $721. Currently, BNB is seeking support at the 200-day EMA slope to stave off a deeper decline.

Conversely, a break below the wedge’s support trendline could empower sellers, leading to an extended correction.