- Binance Coin (BNB) flipped its 50-Day Moving Average into support.
- Meanwhile, Binance CEO Changpeng Zhao said rebuilding the crypto exchange as a centralized entity would help solve its problems with regulators.
NEW DELHI (CoinChapter.com) — The world’s largest crypto exchange, Binance, is looking for a home. Changpeng Zhao, CEO of Binance, told the South China Morning Post that the company needs a centralized entity to satisfy regulatory norms. Binance has had a complicated relationship with financial regulators around the world.
Binance’s CEO also added that the company needs to have ‘clear records of stakeholder ownership and risk controls.’. Meanwhile, Binance’s native token, BNB, moved above its 50-Day SMA on Sept 15 after Binance Coin fell 29.4% between high ($508) and low ($358.5) levels on Sept 7.
BNB Price Charts
BNB began the day at $431.41 before prices fell to $422.23. However, the Binance token rallied to reach $433 later in the day, after which prices pulled back again to $419.16. Thus, BNB prices gained 14% from Sept 14’s low of $385.97 to Sept 15’s high of $440.19, which put it above its 50-Day (Yellow) Moving Average.
As a result, BNB is now bullish across all time horizons since its prices are already above their 200-Day (Red) MA line. For now, immediate resistance for Binance Coin is near its 26-Day (Green) Exponential MA line at $439.98. However, if bulls push further, BNB will reach $457 before any pullback.
In case of a sustained uptrend, resistance at $487.39 would come into play. On the other hand, if bulls fail to consolidate at current levels, immediate support for BNB is at $409.95, followed by support near its 200-Day MA line at $392.5. Moreover, a further decline would see prices fall to $373 before consolidating.
Bars on the MACD histogram are moving upwards towards positive levels. It indicates that the MACD line (difference of 12-Day and 26-Day EMA) moves up towards the MACD signal line (9-Day EMA of MACD). Once the MACD line moves above its signal line, a bullish crossover occurs.
The relative strength index for BNB is 47.54, putting it firmly in the neutral regions.
A Place To Put Down Roots
Changpeng Zhao, or ‘CZ,’ admitted that Binance is trying to rebuild itself as a licensed financial institution by establishing a centralized headquarters. The CEO’s comments come on the back of the company’s many run-ins with regulators around the world this summer.
Regulators from several countries, including the UK, the Cayman Islands, Malaysia, Singapore, Japan, and Italy, questioned the legitimacy of Binance’s operations. The Cayman Islands Monetary Authority and CONSOB (Italy’s financial watchdog) both announced the exchange’s operation in their respective jurisdictions is unlicensed.
Japan’s Financial Services Agency issued a notice warning consumers against transacting with Binance. Similar regulatory scrutiny forced Binance to rethink its structure. Currently, Binance functions as a decentralized entity without any official headquarters.
As the largest player in the industry, we need to prepare ourselves for the shift. We are making changes to make it easier to work with regulators.Changpeng Zhao said in his interview with SCMP
Binance’s rebuilding efforts with centralized headquarters, the exchange would be turning its back on the core ethos of cryptocurrencies- decentralization.
In other news, Binance announced the addition of ALICE as loanable assets on the Binance Loans platform. ALICE is the native token social simulation blockchain game ‘My Neighbor Alice,’ the 18th project on Binance Launchpool.
In addition, Binance Labs and Multicoin Capital co-led the $6 million funding round for LayerZero, a new interoperability protocol that connects disparate blockchains.
At the time of writing, BNB was trading at $427.6, down 0.90% on the day.