Binance Coin (BNB), the world’s fourth-biggest cryptocurrency, is now positioned for a substantial upside rally as Changpeng Zhao, the former CEO and founder of Binance, has been released from jail. During CZ’s imprisonment, BNB has struggled and experienced a prolonged period of consolidation.
Whales Activity Signals Bullish Shift
However, it appears that the sentiment has shifted from a downtrend to an uptrend. According to 0xScopescan, crypto whales have staked over $154 million worth of BNB tokens on Binance Smart Chain (BSC), indicating a bullish market sentiment.
BNB Price Momentum
At press time, BNB is trading near $613 and has experienced a price surge of over 2.75% in the last 24 hours. During the same period, its trading volume jumped by 20%, indicating increased participation from traders amid the ongoing market reversal.
BNB Technical Analysis and Upcoming Level
According to expert technical analysis, BNB appears bullish not only due to CZ’s release from jail but also because of its price action pattern and the imminent breakout of the $620 resistance level.
Over the past three months, BNB has tested this resistance level multiple times, and it now appears to be weakening. Additionally, the token has formed a bullish triple-bottom price action pattern and is on the verge of breaking out of the neckline or resistance level.
If BNB breaches the current resistance level and closes a daily candle above the $625 level, there is a strong possibility that BNB could soar to the $700 level in the coming days. This bullish thesis will only hold if BNB closes its daily candle above $625; otherwise, it may fail.
Bullish On-Chain Metrics
The current positive sentiment is further supported by on-chain metrics. Coinglass’s BNB Long/Short ratio currently stands at 1.076, indicating a strong bullish sentiment among traders. Additionally, its future open interest has increased by 5.5% and continues to rise, indicating growing interest from traders and investors.
In conclusion, Binance Coin (BNB) is showing strong signs of a potential upside rally, bolstered by the release of Changpeng Zhao, significant whale activity, and positive on-chain metrics. Traders and investors should closely monitor BNB’s price movements, especially around the critical resistance level of $620, to capitalize on any potential bullish breakouts.
