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Binance Coin (BNB) could be poised for a major rally amid rising speculation around the early release of former Binance CEO, Changpeng Zhao (CZ). As news of CZ’s impending release circulates, BNB has seen a sharp increase in value over the past few weeks.
On September 6, BNB was priced at $487.20, and as of this writing, it has surged past $600. While investors are anticipating further gains, some analysts suggest that a stronger-than-expected rally could occur sooner than projected, driven by market excitement around CZ’s return.
Binance Coin Rises in Anticipation with CZ Set to Be Free
Zhao, who was sentenced to jail in April, is set to be free on Sunday, September 29. However, emerging information today, as reported by BeInCrypto, suggests that CZ could be released today.
Before the information about the ex-Binance CEO got out, Binance Coin’s price was $595. Now that it has moved to $605,60, analysis of the daily timeframe reveals that it could be higher
BNB’s price hit a new all-time high while Zhao was in jail, climbing to $720 for the first time ever. The coin is currently 16% down from that peak. However, the chart below shows the formation of an inverse head-and-shoulders pattern. Upon completion, the pattern indicates a bullish reversal from a downtrend.
Read more: Who Is Changpeng Zhao? A Deep Dive Into the Ex-CEO of Binance
Considering the current market conditions, it might signal the restart of the BNB’s bull run. As seen above, the coin holds strong support at $510. However, it could face resistance at $620.
In addition, the Chaikin Money Flow (CMF) indicator is trending upward, signaling strong buying pressure for Binance Coin (BNB). The CMF is a technical tool that tracks an asset’s net accumulation or distribution. A declining CMF often indicates selling pressure, while the recent rise suggests that BNB is seeing increased accumulation.
BNB Price Prediction: Higher Highs Only
A further assessment of the daily chart shows that bulls are fiercely defending the support at $533.60. This was also vital to BNB’s bounce off the 20-day Exponential Moving Average (EMA).
The EMA is a technical oscillator that measures trend direction using price changes. If the price is below the indicator, the trend is bearish. On the other hand, a rise above it signifies a bullish trend.
Apart from that, the 20 EMA (blue) has crossed over the 50 EMA (yellow). Known as a golden cross, this position indicates that BNB’s price might continue to appreciate. Without a notable resistance ahead, the price could jump to $656 and possibly hit $724.70 once Zhao leaves prison and it becomes public.
Read more: BNB Crypto Storage: Best BNB Wallets to Consider in 2024
Failure to break above $656 might, however, invalidate this thesis. Should that happen, Binance Coin’s value could decline to $564.10.