The US Supreme Court's rejection of Binance's appeal led to a BNB price drop, triggering $1.9M in long liquidations. Uncover the implications and future outlook for Binance's token.
Written by Thomas - Last updated on 01/15/2025 at 10:33 by Thomas
The United States Supreme Court has rejected the appeal filed by the Binance exchange last December. This decision has caused significant volatility in the price of Binance Coin (BNB), the platform’s native cryptocurrency.
According to Coinglass data, within 24 hours of the announcement, nearly $2 million worth of long positions in BNB were liquidated. This led to a sharp drop in the BNB price, hitting a multi-week low at $660, before rebounding to $698 at the time of writing.
However, this also coincides with the overall market downturn and the Bitcoin rebound towards $88,800, close to the average purchase price of STH (short term holders). It remains challenging to gauge how the market will react to this new rejection.
As a reminder, the lawsuit accuses Binance of offering unregistered securities as an exchange platform under US laws. The Supreme Court once again rejected Binance’s appeal, citing as its main argument that their headquarters are not located in the USA.
In March 2022, the Manhattan Court of Appeals revived the case, ruling that despite the lack of a US headquarters, Binance was still subject to securities laws because the servers enabling token purchases used servers based in the US.
The exchange decided to appeal last December. They argued that technological innovations allow investors to invest in foreign markets. Binance representatives stated:
“Where such opportunities were once reserved for those who could travel abroad, work with international investment firms, or establish offshore entities, the Internet has made the same access available to investors with fewer resources.”
For now, BNB has rebounded well after the announcement, recording a +5.97% increase since dropping to $660. In the last 24 hours, $440,000 of shorts were liquidated versus $70,000 of longs, as per Coinglass. Since short liquidation turns into buy orders, BNB could accelerate in case of a BTC rally.
However, the rise in the number of shorts reveals a somewhat negative investor sentiment. For instance, the Chaikin Money Flow signals this bearish sentiment and the lack of liquidity influx. With a negative CMF at -0.02 at the time of writing, despite the 5% price increase, BNB may face challenging and volatile days ahead.
Nonetheless, BNB is still evolving within a symmetrical triangle pattern. A bullish breakout from this setup at $746 (+6%), regaining above the next Fibonacci level at 0.5 ($707), could reverse the trend. Conversely, a bearish break below the support below $695 would invalidate the bullish pattern, at least in the short term.
In conclusion, the expected SEC policy shift in the coming days could reignite the bullish momentum of BNB. The announced departure of Gary Gensler could potentially benefit tokens previously under the crypto watchdog’s scrutiny.
⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.
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Web editor for many years and SEO specialist, Thomas became an editor for InvestX when the site was launched. Passionate about the field of crypto and Web3, Thomas has made it his mission to deliver maximum value and introduce readers to the world of blockchains, considered for him as the world of tomorrow.
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