Key Insights
- Binance continues to face mounting scrutiny from various world governments.
- The latest one comes from France, with allegations tied to money laundering, drug offenses, terrorism financing and other offenses.
- This probe has had little effect on the price of BNB, and a bullish break could be inbound.
- BNB could rebound off the $670 zone and retake the $725 price level.
- If this happens, the resulting bullish move could lead to the psychological $1,000 zone.
Binance has been through several ups and downs over the years from countries over the world.
However, this time around, the marketplace is facing serious accusations of money laundering and drug trafficking, among other offenses from France.
Is this enough to stall the incoming breakout of the BNB coin?
The French Money-Laundering Investigation
Sometime during the week, a Reuters report showed that the Paris Public prosecutor’s office launched a probe into Binance’s activities between 2019 and 2024.
This probe was mainly into the exchange’s possible involvement with vices like money laundering connected to drug trafficking.
So far, the French authorities have expanded their investigation, under suspicion that Binance may be involved.
This marks a whole new paradigm to the 2023 investigation that focused on Binance’s alleged “unregistered” marketing activities within France and the broader European Union.
So far, French authorities have widened the probe and are suspecting Binance of being involved in habitual money laundering, tax fraud, terrorism financing and other illegal activities.
Will This Be Enough To Stall BNB?
According to insights from CoinMarketCap, BNB has reacted somewhat to the news, but has only moved to the underside by less than 2% in the past week.
This shows that the BNB bulls have been unfazed by the latest updates in the French case.
The cryptocurrency trades at a current price of $671 with a healthy 12% increase in its trading volumes over the last 24 hours.
According to data from Coinglass, the cryptocurrency’s funding rates are currently on the low side, at a current level of $0.0068.
On the flip side, the Open Interest on BNB has remained strongly positive lately, with a position of $934 million.
This is slightly smaller than the $1 billion monthly peak on 26 January, but still indicates that the bulls are interested in BNB.
Here’s why they are though.
Is BNB Ready To Break Above $725?
The first thing to notice about the price action of BNB is that the cryptocurrency currently trades within an ascending triangle formation.
BNB has been stuck within this formation for months, trading within since July of last year.
For most of its journey within this formation, BNB had been trading atop its 50-day EMA, ascending further to the upside and hitting resistance around the $725 price level.
However, the cryptocurrency appears to be consolidating against the lower trendline of this formation and could be looking towards a rebound.
If the BNB bulls successfully hold its price up above the $670 price level, BNB is likely to rebound and finalize its position above the $725 price zone.
Once this happens, the cryptocurrency will be free to use this price level as a launchpad for a jump towards the psychological $1,000 zone.
On the flip side, if BNB loses the $670 price level, the resulting decline could take it further down towards the next support level around the $620 zone.
