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This is when BNB will begin a bullish breakout

This is when BNB will begin a bullish breakout

Unlike most other major cryptocurrencies that are decisively above their January values in the final month of 2023, BNB has experienced a significant decline due to a barrage of troubling news.

 The first major event  – and the one that had the starkest impact – came in early June when the Securities and Exchange Commission (SEC) announced it was suing the cryptocurrency exchange Binance.

The announcement sent BNB falling off a cliff, erasing its recent growth and dropping it below January 1 prices. For several months after the news, BNB continued trading mostly sideways and went through several smaller rises and drops until late November.

On November 21, Changpeng Zhao stepped down as CEO of the crypto exchange as part of a settlement with the U.S. government. Since then, BNB has continued trading close to $230, making many investors wonder when and if the cryptocurrency will again enter into a bullish phase.

BNB YTD price chart. Source: Finbold

What would be a good time to buy BNB?

In its most recent weekly chart, Binance’s BNB formed a clear descending triangle, hinting that the cryptocurrency has not yet escaped its bearish momentum, as noted by the crypto analyst Ali Martinez in an X post from the evening of December 10.

A descending triangle is a chart pattern that forms when the resistance line connecting the highs is sloped downward, and the support line maintains a horizontal position and is a bearish continuation pattern.

BNB’s weekly descending triangle. Source: Ali Martinez

Martinez assessed that BNB’s recent performance indicates that “it might be wise to hold steady” for the time being. They, however, stated that investors interested in buying the Binance coin should look for a close above $260 – the price last around the time Zhao resigned – as it would indicate that BNB is likely entering a bullish breakout.

BNB price analysis

Recent months saw BNB caught up in the momentum of the current crypto market rally. Between mid-October and Zhao’s departure, it rose from about $205 to above $250, only to plunge below $230. 

More recently, Binance coin started slowly rising again but was affected by a major selloff that took place in the night between December 10 and 11.

In the last 24 hours, largely due to the selloff, BNB is down 2.73% and stands at the price of $233.59 at the time of publication.

BNB 1-day price chart. Source: Finbold

The selloff, estimated to have liquidated positions worth approximately $280 million, had a significant effect across the crypto market. In the last 24 hours, Bitcoin (BTC) is down more than 3% and is worth about $43,363 and Ethereum (ETH) has dropped 4.48% to a price of $2,247.27.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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