BNB Chain’s native token, BNB, continues its upward trajectory for the third consecutive week, achieving approximately 10% weekly gains. On August 22, BNB’s value surged to around $585. Key elements driving this price increase include Binance‘s strategic augmentation of its compliance team, rising expectations of potential interest rate reductions in the United States, and other significant market developments.
What’s Happening on the BNB Front?
Today’s rally in BNB coincides with Binance’s announcement to significantly enhance its compliance team by 2024. CEO Richard Teng highlighted that at least 20% of the new hires will focus on bolstering the company’s regulatory compliance initiatives. This announcement follows a class-action lawsuit filed by three crypto investors against Binance and its former CEO, Changpeng Zhao, for allegedly failing to prevent money laundering, which resulted in asset losses for the investors. Access COINTURK FINANCE to get the latest financial and business news.
According to data from Coinglass, the price increase of BNB has been accelerated by a higher number of short liquidations compared to long ones since the crypto market crash on August 5. Specifically, the BNB futures market saw over $7.21 million in short liquidations versus $3.86 million in long liquidations.
BNB Chart Analysis
From a technical analysis perspective, BNB’s recent gains are part of a rising wedge pattern, characterized by two converging upward trend lines. Rising wedge formations are generally considered bearish reversal patterns that materialize when the price falls below the lower trend line, potentially resulting in a significant drop.
Applying this analysis to BNB’s price chart, $586 emerges as a critical breakdown point. If BNB descends below this threshold with increasing trading volume, it could signal further declines, potentially targeting $480 as the rising wedge breakdown target for August.
Investment Implications
For investors considering BNB, here are some key takeaways:
- BNB’s gains are influenced by strategic moves from Binance, such as expanding its compliance team.
- Short liquidations in the futures market have accelerated BNB’s price increase.
- Technical analysis indicates that $586 is a critical level to watch for potential breakdowns.
In summary, BNB’s recent price movements highlight the impact of market dynamics and strategic initiatives by Binance. Investors should monitor key technical levels and market developments to make informed decisions.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bnb-surges-for-third-consecutive-week