This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Binance Coin (BNB) has experienced a significant price increase of over 12% since November 20th, reaching a daily high of around $268 on November 21st. This surge in price follows a Bloomberg report stating that the US Justice Department may be considering a deferred prosecution agreement (DPA) with the exchange. A DPA is a legal mechanism that allows corporations to avoid criminal charges by meeting certain conditions, such as financial penalties and remedial measures. The proposed resolution could involve heavy financial penalties and remedial measures, and there is a possibility that Binance CEO Changpeng ‘CZ’ Zhao may face criminal charges in the US. The Department of Justice’s investigation into Binance and CZ is seen as a major obstacle for the exchange. While some market participants are optimistic about the potential settlement, others, such as former SEC official John Reed Stark, have expressed dissent. Stark explains that DPAs often require challenging commitments from the defendant, including compliance requirements and corporate reforms. Additionally, DPAs often involve independent monitoring, which may be difficult for Binance given its history of secrecy and libertarianism. In terms of technical analysis, a bullish pattern known as the ‘falling wedge’ suggests a potential reversal to the upside for BNB. This pattern occurs when an asset’s price makes lower highs and lower lows, with the slope of the lows being steeper than that of the highs. According to technical analysis rules, BNB price could potentially spike by 262% to reach a theoretical price target of around $934. However, the resistance near $270 has prevented BNB price from surpassing this level. The presence of bearish pressure is indicated by the long upper wicks on recent daily candles. If selling pressure increases, BNB price may test support levels near $246 and $233. On the positive side, BNB’s 20-day EMA and 200-day EMA have formed a bullish technical pattern called the golden cross. Breaking above the immediate resistance could help BNB price reach the resistance near $289. The RSI for BNB remains neutral, with a score of 66.51 on the daily charts.