A prominent crypto analyst warns that a Binance-backed altcoin project may fall hard. Their claims are based on the latest developments around the leading exchange.
Famous analyst alarmed about this Binance-backed altcoin
After the bankruptcy of FTX, individual investors began to be skeptical of exchange tokens such as CRO, HT, BEST. The largest exchange, Binance, in particular, was at the center of the FUD news in December, spreading fears. The biggest indicator of this is the nearly $3 billion Bitcoin (BTC) withdrawn from Binance wallets that occurred on December 13. Binance even had to suspend withdrawals for a while on these dates.
Now, “BNB may drop aggressively,” says PROFIT BLUE on Twitter. The analyst bases his forecasts on technical patterns that appear on the monthly chart.
The analyst shared that the BNB chart creates a double top, bearish trend on a monthly timeframe. The price closed below the neckline at $325,722, retested and failed to close above it. However, it shows via the chart that the BNB price could drop to around $44. PROFIT BLUE, 29 December, details the technical analysis it provided:
BNB is forming a major reversal pattern on the charts. The neckline was broken and recently retested. BNB could drop aggressively from here. Be careful…
The chart also shows that multiple times $216 has given BNB price a decent bounce. BNB price will lose a major support zone if it fails to hold the $216 zone.
Meanwhile, BNB Coin (BNB) was rising with a green 1% movement on the daily and weekly timeframe. It is trading above $245 at the time of writing. The $40 level pointed out by the analyst will mean more than 200% decline.
Analyst backs BNB predictions with Bitcoin’s price action
PROFIT BLUE claims that BNB formed the reversal pattern that dropped Bitcoin from $69,000 to $15,000. Bitcoin formed a similar double top formation with resistance at $35,000 on a monthly timeframe. After the neckline was crossed, the price of Bitcoin dropped more than 50%. The leading crypto is currently trading around $16,600.
Is everything this bad?
On the positive side, Binance Coin recently released an update on the BNB Beacon Chain. According to the announcement, the BNB Beacon Chain testnet is expected to have a planned hard fork upgrade at blocks 34,587,202 and blocks 34,963,303. Given the current block generation rate, the hard fork is expected to occur on January 2, 2023. After the hard fork is released, validators need to upgrade to v0.10.4.
BNB Chain is the cornerstone of the Binance ecosystem. The network’s new partnership to support its activities in the Web3 and GameFi domains. cryptocoin.comWe have included it in this article.