BNB, the native token of the Binance Exchange, has emerged as one of the largest cryptocurrencies globally. With a current price of $260 and a market cap exceeding $39 billion, it holds the fourth position in the market. However, despite its notoriety, a notable crypto analyst has recently predicted a potential price crash that could send shockwaves throughout the crypto market.
Alan Santana, a crypto analyst, presented his analysis on the TradingView website, emphasizing that the BNB token has entered what can be viewed as a long-term distribution phase. This phase appears to have started after the altcoin reached its all-time high price of $670 in 2021. Santana identifies this as a bearish sign and speculates that the bearish pressure could potentially drive the price back to its 2018 lows.
The analyst further points out that the BNB price is still trading below its 200-day Moving Average (MA), which further adds to the bearish sentiment surrounding the asset. However, Santana acknowledges that this metric alone is unlikely to push the price 99% below its current value. Instead, he suggests that if coupled with negative news about the exchange, the consequences could be devastating.
Binance Exchange has faced numerous challenges in its dealings with regulators. It was instructed by regulators to halt the minting of its stablecoin issued by Paxos. Moreover, CEO Changpeng Zhao recently stepped down after Binance agreed to pay $4 billion in fines to the US Securities and Exchange Commission (SEC). These events, combined with the aforementioned indicators, contribute to the analyst’s prediction of a potential crash in the BNB price.
While Santana expresses a bearish outlook for BNB, he acknowledges that pinpointing an exact endpoint for the potential crash is impossible. The chart analysis supports a downward trajectory, but determining whether the final target would be $11, $6, $2, or even $0.10 remains uncertain. Despite this ambiguity, the analyst believes that the indicators align with a lower price for BNB.
In a follow-up post, Santana introduces the concept of “restructuring” within the Binance Exchange. He suggests that the exchange will undergo changes and improvements in its corporate network, leading to the freezing of operations. However, the analyst believes that the exchange will strategically wait for the best time to initiate this restructuring process. Santana speculates that during a market correction following the SEC’s announcement, which is expected in late December or early January 2024, Binance will use this opportunity to implement the restructuring plan. This strategic move could freeze billions of customers’ funds and create a window for institutions and big players to purchase Bitcoin at a lower price.
Despite the grim prediction of a potential crypto market collapse, the analyst remains optimistic about the long-term impact. Santana suggests that the evolution of life will naturally decide who succeeds and who fails, ultimately determining who was right or wrong in their predictions. While the future of BNB remains uncertain, time will be the ultimate judge.
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