BNB, the native token of the Binance Exchange, has risen to prominence as one of the largest cryptocurrencies in the world. With a market cap over $39 billion and a current price of $260, it stands as the fourth-largest asset in the market. However, despite its success, one crypto analyst believes that BNB could be headed for a massive price crash, which could have far-reaching consequences for the entire crypto market.
According to crypto analyst Alan Santana, the BNB token has entered a long-term distribution phase. Santana points out that this phase began after the altcoin reached its all-time high price of $670 in 2021. While this distribution phase is considered to be bearish, Santana suggests that the bearish pressure could push the price back to its 2018 lows. Additionally, Santana notes that the BNB price is currently trading below its 200-day Moving Average (MA), a bearish indicator. However, he cautions that this alone may not send the price plummeting, but when combined with negative news about the exchange, the impact could be devastating.
The Binance Exchange has faced its fair share of regulatory challenges. Recently, regulators instructed the exchange’s stablecoin issued by Paxos to halt minting. Furthermore, CEO Changpeng Zhao resigned after the exchange and its founder agreed to pay $4 billion in fines to the US Securities and Exchange Commission (SEC). Santana suggests that these developments could drive the BNB price lower, although he admits pinpointing an exact endpoint is impossible.
Santana believes that the next move by the exchange will involve “restructuring,” which would result in changes and improvements to the corporate network. This, in turn, would require freezing funds. However, Santana suggests that this move will not happen immediately. Instead, the exchange would wait for the best time to carry out the restructuring, most likely during a market correction following the SEC’s announcement in late December or early January 2024. Santana believes that this strategy would enable institutions and big players to buy Bitcoin at a low price.
Despite the grim prediction of a potential price crash, Santana maintains a positive outlook in the long term. He emphasizes that life will continue to evolve and that nature will determine which entities thrive and which ones fail. Santana’s concluding message suggests that time will be the ultimate judge of who was right and who was wrong.
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