Crypto Analyst Predicts Massive 99% BNB Price Crash To $2

BNB is the native token of the Binance exchange and has grown to become one of the largest cryptocurrencies in the world. At its current price of $260, it has a market capitalization of over $39 billion, making it the fourth largest asset on the market. However, even though cryptocurrencies have gained notoriety during this time, one crypto analyst still predicts a major price crash that could shake the entire crypto market to its core.

BNB long-term distribution point crashes

inside Initial analysis In the article, posted on the TradingView website on Tuesday, December 19th, cryptocurrency analyst Alan Santana noted that the BNB token was in what could be considered a “long-term circulation phase.” He identifies this circulation phase, which appears to have begun after the altcoin reached an all-time high of $670 in 2021, on a shared chart.

Although this has been noted as bearish, Santana believes this bearish pressure could push prices back to 2018 lows. In addition to this, the analyst explains that BNB price is still trading below its 200-day moving average (MA). This in itself is very bearish for the price of the asset, but he cannot reduce the current price by 99%. However, adding bad news about exchanges to this metric could have a devastating effect, he explains.

BNB price chart on Tradingview.com

Source: Tradingview.com

It’s no surprise that the Binance exchange has endured its fair share of issues when it comes to dealing with regulators. The exchange’s stablecoin issued by Paxos has stopped minting following instructions from regulators. CEO Changpeng Zhao subsequently resigned after the transaction, and the founders agreed to pay a $4 billion fine to the U.S. Securities and Exchange Commission (SEC).

Crypto analysts said that in such cases, the chart points in a lower direction, but it is impossible to pinpoint a specific endpoint. “It’s impossible to say exactly whether the final target will be $11, $6, $2, or $0.10, and it’s very difficult to predict the exact target, but the chart below shows that It suits me,” he said.

BNB price chart on Tradingview.com

Token price starts to recover | Source: BNBUSD on Tradingview.com

wait for the best time

In addition to the indicators mentioned by the same analyst, he made a follow-up post adding other factors that could cause a 99% crash in BNB price. Santana explained that the exchange’s next move will be what he calls a “restructuring,” referring to the leadership change that occurred about a month ago.

he said:

Almost everything will be frozen as the company “rebuilds”, changes and improves its corporate network. But don’t worry, the funds are his SAFU.

However, Santana explains that this won’t happen right away and that he will wait for the best time to actually make this move. Analysts say a drawdown from the current bull market is the best time for them.

“Therefore, they will likely wait for the market correction to develop after the SEC announcement in late December or early January 2024. Once the market is near or reaches the bottom, the ‘restructuring’ will be It could start,” Santana said. “This will freeze the funds of billions of customers and give financial institutions, large corporations, and spot ETFs time to buy Bitcoin at low prices.”

Despite dire predictions that the crypto market could collapse if that happens, crypto analysts believe this will be a long-term positive. “Life will continue to evolve. Nature will choose who goes and who stays, and time will decide who was right and who was wrong,” Santana concluded.

Featured images from Portal do Bitcoin, charts from Tradingview.com

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