BNB, the native token of the popular Binance Exchange, has undoubtedly become a formidable presence in the cryptocurrency market. With a market capitalization of over $39 billion and a price of $260, it currently ranks as the fourth-largest asset in the world. However, amidst its meteoric rise, one crypto analyst remains pessimistic, predicting a massive price crash that could send shockwaves throughout the entire crypto market.
The initial analysis by Alan Santana, shared on the TradingView website, identifies a long-term distribution phase for the BNB token. This phase appears to have commenced after the altcoin reached its all-time high price of $670 in 2021. While the assessment is bearish, Santana takes it a step further, suggesting that the bearish pressure might push the price back to 2018 lows. Furthermore, Santana points out that BNB is still trading below its 200-day Moving Average (MA), which is an additional bearish signal. Although this factor alone might not send the price plummeting 99%, if coupled with negative news regarding the exchange, the consequences could be devastating.
Binance Exchange has had its fair share of challenges when it comes to regulatory compliance. The issuance of its stablecoin, in partnership with Paxos, was halted due to regulatory instructions. Additionally, the exchange’s CEO, Changpeng Zhao, stepped down following an agreement for Binance and its founder to pay $4 billion in fines to the US Securities and Exchange Commission (SEC). Santana believes that these incidents, coupled with the chart analysis, suggest a decline in price, although pinpointing a specific endpoint remains impossible. The analyst states, “It is very hard to predict an exact target, but the chart is pointing lower.”
In addition to the aforementioned indicators, Santana published subsequent posts highlighting other factors that could potentially trigger a dramatic 99% crash in the BNB price. He draws attention to the recent change in management and suggests that Binance will undergo a period of “restructuring,” involving changes and improvements within the corporate network. This process will inevitably freeze certain aspects of the platform. However, Santana emphasizes that the exchange will carefully time this move, waiting for the best moment to implement it. He speculates that a drawdown from the current rally would present an opportune time for Binance to initiate the restructuring. Santana explains, “So they would let the market correction play out after the SEC’s announcement late December or early January 2024. Once the market is about to bottom or hits bottom, then the ‘restructuring’ can start. This would freeze billions of customers’ funds and allow time for the institutions and big players to buy Bitcoin at a low price.”
While Santana’s grim prediction has the potential to cause significant disruption in the crypto market, the analyst maintains that, in the long term, it could be positive. He suggests that natural selection plays a part in the evolution of markets and that ultimately time will determine who was right and who was wrong. However, it is essential to remember that all investments carry risks. This article is intended solely for educational purposes and does not represent the opinions of NewsBTC. Individuals are strongly advised to conduct thorough research and exercise caution when making investment decisions.
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