Binance Coin Price Prediction as CFTC Sues Binance – Is This the End of Binance Crypto Exchange?

cryptonews.com:

The price of Binance Coin (BNB) has fallen by 5% in the past 24 hours, dropping to $310 in response to the news that the CFTC has filed a civil enforcement action against Binance and its CEO, Changpeng Zhao.

At $310, BNB has also dropped by 7.5% in the past week, although the exchange token is up by 2.5% in the last 30 days, as well as up by 26% since the start of the year.

The CFTC has leveled some serious charges against Binance, including claims that the exchange enabled derivatives transactions for US customers without registering with the CFTC, as well as allegations that it failed to require its customers to verify their IDs before trading on the platform.

The CFTC is seeking some steep penalties for Binance, including "permanent trading and registration bans," yet the exchange has responded vigorously to the regulator's charges, meaning it's hardly a foregone conclusion that it faces an existential threat.

BNB's chart suggests that it could be in store for some further gains, with its relative strength index (purple) dropping from 70 a few days to under 50 today.

This implies that further falls are possible before BNB becomes oversold, an impression reinforced by the fact that the token's 30-day moving average (red) is still due to fall below its 200-day average (blue).

In other words, BNB's current slide won't bottom until the 30-day drops significantly below its 200-day, something which may not happen for a week or so.

As such, the market could see BNB's price fall below $300 in the near future, with the coin as low as $275 as recently as March 11.

Taking the CFTC's charges at face value, things could get much worse for Binance and its BNB coin, given the extent of the allegations.

These claims include the following:

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