Binance Coin has underperformed following the jailing of Changpeng Zhao.
BNB is revolving around the $600 price region.
Zhao will probably get out of jail towards the end of September.
Binance Coin (BNB) has underperformed in the past three months following the imprisonment of former Binance CEO, Changpeng Zhao. The Binance exchange’s native cryptocurrency has hovered around the $600 region, with a few breakout moments in either direction. An upside breakout occurred in June, while a break below support happened this July. However, the price retraced both times to return to the $600 midpoint.
BNBUSD Daily Chart on TradingView
Many analysts have linked BNB’s relative stagnation to the Binance founder’s jailing, considering the token’s price response. Most crypto users suspect CZ’s jailing injected a negative sentiment into the Binance ecosystem, making users reluctant about the BNB project.
In the meantime, Zhao is halfway through serving his prison sentence, judging from when he got into jail after his April 30 sentencing. Several crypto community members wonder if his release on completing the jail term would trigger volatility and inject any sort of momentum into BNB’s price, especially with the markets picking up and prices trending upwards.
Lately, BNB’s price movement was downwards as it dropped along with the rest of the cryptocurrency market following Germany’s Bitcoin selloff. The crypto coin fell to $455.2, marking a 22% drop. However, the price has recovered, with BNB trading for $594.1 at the time of writing, according to data from TradingView.
For clarification, although the U.S. District Judge Richard Jones sentenced Zhao on April 30, the Binance founder did not go to prison until after a few weeks. Hence, his release date will be calculated from the time of his actual imprisonment; not his sentencing date. Therefore, instead of an August 30 release date, as many of his supporters anticipate, Zhao will most likely leave prison only towards the end of September.
The post Binance Coin’s Recent Price Drop: Impact of CZ’s Legal Troubles and Market Sentiment appeared first on Coin Edition.
