Binance Coin Rising on Deal Claims: What’s Next?

Binance’s $3.9 billion USDT move is gaining community attention amid DOJ compromise allegations. Meanwhile, according to allegations, DOJ will announce this agreement at the press conference it will hold this evening. These deal allegations pushed the Binance Coin (BNB) price north. Crypto analyst Valdrin Tahiri predicts further upside for the token.

Is Binance preparing for the payout in the deal?

Binance transferred $3.9 billion USDT between its wallets days before a report was released regarding a $4 billion settlement with the United States Department of Justice (DOJ). Members of the crypto community on social media

As you follow on Kriptokoin.com, on November 20, Bloomberg reported in a news report based on anonymous sources, that the DOJ was negotiating with Binance on an agreement that would see the company pay a penalty of $4 billion. Allegedly, after payment, the DOJ will allow the company to operate in the United States in compliance with its laws. The news states that this may be announced by the end of November. On November 9, Binance transferred 3.9 billion USDT from its “Binance-Cold 2” wallet on Tron to its “Binance 3” wallet. After the transfer, he transferred 300 million USDT to another wallet. Additionally, approximately 3.6 billion USDT remains on “Binance 3”. This transaction is the eighth largest USDT transaction on the Tron Blockchain, according to blockchain intelligence firm ChainArgos.

Meanwhile, according to some allegations, the DOJ will announce that it has reached an agreement with Binance in this evening’s press release. However, there is insufficient evidence that this claim is true. However, these claims pushed the BNB price north. At press time, BNB was up 6.5% on a daily basis to $264. Additionally, the token’s trading volume increased by 194%.

BNB daily price chart. Source: CoinMarketCap

BNB hits 5-month high, what’s next?

The Relative Strength Index (RSI) on the daily time frame shows signs of a bullish trend. The indicator is above 50 and forming a hidden bullish divergence (green). This is usually a sign that the trend will continue. Price action shows Binance Coin (BNB) price breaking above the minor resistance at $250. However, it still faces resistance at $270 created by the descending resistance trend line. If the BNB price breaks out of the trend line, it is possible to increase by 35%. Thus, it is likely to reach the next resistance at $350.

BNB Daily Chart. Source: TradingView

Despite this bullish BNB price prediction, a daily close below the $250 region would invalidate the bullish hypothesis and likely lead to a 20% decline to the nearest support at $210.