BNB, the native token of the Binance Exchange, has grown to change into one of many largest cryptocurrencies on the planet. Its present worth of $260 places its market cap above $39 billion, making it the fourth-largest asset available in the market. However, regardless of the notoriety that the cryptocurrency has gained throughout this time, one crypto analyst nonetheless expects an enormous worth crash, one that might shake your complete crypto market to its very core.
BNB Long-Term Distribution Points To Crash
In the initial analysis that was posted to the TradingView web site on Tuesday, December 19, crypto analyst Alan Santana identified that the BNB token had been in what “can be considered a long-term distribution phase.” He identifies this distribution part on the chart shared which seems to be to have begun after the altcoin hit its $670 all-time excessive worth in 2021.
While that is identified to be bearish, the degrees at which Santana believes this bearish stress may take the worth again to 2018 lows. In addition to this, the analyst explains that the BNB price remains to be buying and selling under its 200-day Moving Average (MA). This, in itself, may be very bearish for the asset’s worth, however can not ship it 99% under its present worth. However, he explains that this metric coupled with dangerous information in regards to the alternate might be devastating.
Source: Tradingview.com
It is not any shock that the Binance Exchange has endured its fair proportion of issues with regards to coping with regulators. The exchange’s stablecoin which was issued by Paxos halted minting following directions from regulators. Later, CEO Changpeng Zhao stepped down after the alternate and the founder agreed to pay $4 billion in fines to the US Securities and Exchange Commission (SEC).
The crypto analyst acknowledged that the chart factors decrease in such a case however pinpointing a specific endpoint is unattainable. “It is impossible to say exactly if the final target will be $11, $6, $2 or $0.10, it is very hard to predict an exact target but, the chart is pointing lower,” Santana mentioned.
Token worth begins to recuperate | Source: BNBUSD on Tradingview.com
Waiting For The Best Timing
Coupled with the symptoms that the analyst has identified, he made follow-up posts so as to add different components that might set off a 99% crash within the BNB price. Pointing to the change in administration that occurred round a month in the past, Santana explains that the subsequent transfer by the alternate can be referred to as “restructuring.”
He acknowledged:
The firm will endure some “restructuring”, modifications and enhancements within the company community and thus all the things most be frozen… Don’t fear although, the funds are SAFU.
However, Santana explains that this won’t simply occur and that they’d look ahead to the perfect time to really perform this transfer. According to the analyst, a drawdown from the present rally can be the perfect time for them.
“So they would let the market correction play out after the SECs announcement late December or early January 2024. Once the market is about to bottom or hits bottom, then the ‘restructuring’ can start,” Santana mentioned. “This would freeze billions of customers funds and allow time for the institutions, the big players, the Spot ETFs to buy Bitcoin low.”
Despite the grim prediction that might crumble the crypto market if it occurred, the crypto analyst believes that that is optimistic in the long run. “Life will continue to evolve, nature will pick who leaves and who stays, and time will decide who was right and who is wrong,” Santana concluded.
Featured picture from Portal do Bitcoin, chart from Tradingview.com
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