BNB rallies as CZ begins jail term

Binance's CZ reports to US federal prison on Monday as he begins his four-month jail term.
BNB price increases by 5% as the news causes a bullish sentiment among investors.
BNB could begin run to a new all-time high if it overcomes key resistance.

BNB's price warmed up nicely on Monday to Changpeng Zhao (CZ) beginning his jail term as it's looking toward setting a new all-time high. A new all-time high may be on the horizon if BNB breaks past key resistance.

CZ begins prison sentence

Binance's ex-CEO Changpeng Zhao (CZ) reported to Lompoc II, a federal prison in California, to begin his four-month jail term. On April 30, a US federal judge sentenced CZ to four months in jail for failing to establish robust anti-money laundering policies while serving as head of Binance. Under normal circumstances, this crime carries up to a 10 year prison sentence.

Prosecutors had proposed a three-year jail sentence, but the judge opted for a lesser sentence, citing CZ's guilty plea and cooperation with authorities. In addition to his jail term, CZ received a $50 million personal fine, while his crypto exchange Binance also agreed to pay a $4.3 billion fine.

Although CZ stepped down from his role as Binance's CEO following the federal charges against him, he's still the largest shareholder in the company, with over a 90% stake. According to Bloomberg data, CZ's net worth is $36.5 billion at the time of writing, making him the richest person to serve jail time in recent US history.

BNB technical analysis: New all-time high not far away

BNB rallied nearly 6% in the past few hours following the commencement of CZ’s jail term.

The recent move has also seen BNB open interest (OI) spike by 24% in the past 24 hours, signifying increased investor attention to the asset.

Open interest is the total number of outstanding futures or options derivative contracts within a time frame that is yet to be settled.

BNB Open Interest

Historically, BNB's price increase has often coincided with a rise in OI, indicating the token may be set for more price growth.

Also read: This Binance Coin price pattern breakout forecasts $1,000 per BNB

If the renewed investor interest is sustained, BNB could see a move above the $646 resistance to reach prices last seen in 2021. However, it could shed nearly 3% of its value to collect liquidity at the daily imbalance ranging from $601 to $639 before shooting above the $646 resistance.

BNB/USDT 8-hour chart.

Considering that BNB is also one of the large-cap tokens that have yet to reach an all-time level in the current bull cycle, it may look to topple the $686 all-time high of May 10, 2021.

The bullish thesis will be invalidated if BNB falls below $587.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.