Tezos (XTZ) risks a 40% drop while Binance freezes Baking Bad corporate account

YEREVAN (CoinChapter.com) – Tezos (XTZ) followed Bitcoin into an 8% decline on Aug 26, after a 66% advance since mid-June. As a result, the digital asset price stood at $1.53 in the New York session hours. However, a closer look at the daily chart revealed a bearish setup that could take XTZ an additional 40% lower.

XTZ in a bear flag

Tezos utility token formed a setup known as the ‘bear flag.’ The bearish pattern typically occurs after a sharp decline and entails two parallel trendlines that take the token price higher before dropping it on another leg down. Moreover, the expected drop equals the decline preceding the formation, pinning the Tezos token’s target price at $1.0, the lowest value since Mar. 2020.

XTZ confirmed the setup on Aug 19 by following Bitcoin’s example and dropping below the bear flag’s support line. Furthermore, the trading volumes have gradually declined since mid-June, reflecting the trader’s passivity and confirming the bearish prognosis.

Also read: Tezos sees increased network usage in Q2 while XTZ targets 30% gains.

Meanwhile, Tezos Network had other issues to deal with, as Binance froze a Tezos contributor account on Jul 1.

Binance vs. Tezos – what happened?

The mentioned Tezos contributor Twitter account with the handle ‘Baking Bad’ tweeted their indignation on Aug 25, claiming that the Binance exchange suspended their account “without any explanation.”

Today all our balances were set to zero (more than $1M). We have all the materials to begin the investigation and inform the community, but for now, just stay away from Binance.

commented the Tezos account.

However, Binance retaliated by pointing out that they froze the account because of a law enforcement request and said that Baking Bad is aware of the issue behind the freeze as it was notified multiple times.

Baking Bad later admitted to being aware of the freeze since Jul 4 but commented that their attempts to resolve these issues have been futile as there has been no response from the Department of Justice. Additionally, Tezos representative claimed that Binance “took actions” with the account without any notification, while the Network had no information on whether the investigation was ongoing.

Moreover, Baking Bad claimed they made multiple requests to the Department of Justice. However, Tezos Network got no response, even after two months of repeated requests.

The upcoming sessions will show if Binance has a response to the issue.