In the crypto world, few tokens have gained as much attention as BNB. However, recent events have impacted the coin’s once-bullish trajectory, leaving investors uncertain whether BNB can stage a surprise breakout. Today, we’ll explore the key factors contributing to BNB’s recent decline and assess the potential for a bullish comeback.
The SEC Lawsuit and Leadership Change
BNB faced a significant setback in early June when the U.S. Securities and Exchange Commission (SEC) announced a lawsuit against Binance. This announcement took the market by surprise and caused BNB to plummet. This situation led to the coin dropping below its price on January 1.
The resignation of Binance’s CEO, Changpeng Zhao, on November 21 added further uncertainty to BNB’s future. Despite these challenges, BNB continued to trade around the $230 mark, leaving everyone in suspense regarding the potential for a bullish breakout.
Technical Analysis and the Descending Triangle
A recent analysis of BNB’s weekly chart by prominent crypto analyst Ali Martinez reveals a descending triangle pattern formation. This bearish continuation pattern is characterized by a downward-sloping resistance line connecting highs and a horizontal support line. According to Martinez, this pattern suggests that BNB might still be in a bearish trend.
Investors should be careful during this period, with Martinez suggesting that holding steady might be the best move. However, for those eyeing an entry point, Martinez recommends monitoring BNB’s price closely and waiting for a close above $260. This saw the price around Zhao’s resignation. A breakout above this level could signal a potential shift in momentum.
Recent Market Movements
Even though BNB was surging along with the rest of the market, it experienced a significant drop below $230 in mid-October. A notable selloff happened on the night between December 10 and 11, affecting BNB’s price even further.
As of the latest update, BNB has seen a 2.73% decrease in the last 24 hours, trading at $249.40. The selloff has caused major liquidations worth around $280 million. It also had a ripple effect on Bitcoin (BTC) and Ethereum (ETH). BTC dropped more than 3% at around $41,862, and ETH fell by 4.48% at $2,229.27.
In conclusion, BNB finds itself in a tricky situation, facing regulatory and market challenges. The descending triangle pattern gives bearish signals, but the potential for a surprise breakout remains. Investors should closely monitor key levels, particularly around the $260 mark.