The Binance Coin (BNB/USD) is loitering near its highest level since 19th May even as more regulatory scrutiny surrounds Binance. The coin is trading at $500, which is about 140% above the lowest level in June this year.
Binance challenges mount
Binance is the biggest cryptocurrency exchange in the world. According to CoinMarketCap, the exchange volume has risen by more than 20% in the past 24 hours to more than $33 billion. Coinbase comes a distant second having processed cryptocurrencies worth more than $4.9 billion.
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This trend ignores the significant challenges facing Binance. In the past few months, more regulators have issued warnings about Binance and the risks it poses. The most recent regulator to warn about Binance was the Monetary Authority of Singapore (MAS). The regulator asked the company to halt its operations in the country.
Other top regulators who have warned about Binance are from the Netherlands, United Kingdom (UK), United States (US), and South Africa. The main concern is that Binance is operating in these countries without the necessary approvals.
Worse, the company does not have a headquarters, making it difficult to seek recourse for customers to complain to. The firm is addressing some of these concerns. For example, it has launched a standalone regulated company, known as Binance.us, in the US. This exchange had a volume of almost $1 billion in the past 24 hours.
The Binance Coin price has risen because of the strong demand for products offered by Binance. At the same time, the decentralized finance (DeFi) and NFT space that the Binance Smart Chain (BSc) network is in have done relatively well.
Still, the biggest concern for BNB is that competition among Ethereum-killers is rising, with projects like Solana and Avalanche generating a lot of interest.
Binance Coin price prediction
The daily chart shows that the BNB price has been in a strong bullish trend in the past few weeks. Along the way, it has moved slightly above the upper side of the triangle pattern shown in black. It has also risen above the 25-day and 50-day moving averages and formed a bullish flag. Notably, the coin is about 40% below its all-time high.
Therefore, there is a likelihood that the coin will maintain its bullish trend as investors target the all-time high. This view will be invalidated if the price moves below the key support at $400.
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