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BNB, the native token of the Binance Exchange, has grown to develop into one of many largest cryptocurrencies on the planet. Its present value of $260 places its market cap above $39 billion, making it the fourth-largest asset available in the market. However, regardless of the notoriety that the cryptocurrency has gained throughout this time, one crypto analyst nonetheless expects a large value crash, one that might shake the whole crypto market to its very core.

BNB Long-Term Distribution Points To Crash

In the initial analysis that was posted to the TradingView web site on Tuesday, December 19, crypto analyst Alan Santana identified that the BNB token had been in what “can be considered a long-term distribution phase.” He identifies this distribution part on the chart shared which appears to be like to have begun after the altcoin hit its $670 all-time excessive value in 2021.

While that is identified to be bearish, the degrees at which Santana believes this bearish stress may take the value again to 2018 lows. In addition to this, the analyst explains that the BNB price remains to be buying and selling under its 200-day Moving Average (MA). This, in itself, may be very bearish for the asset’s value, however can not ship it 99% under its present value. However, he explains that this metric coupled with unhealthy information in regards to the trade could possibly be devastating.

Source: Tradingview.com

It is not any shock that the Binance Exchange has endured its fair proportion of issues in the case of coping with regulators. The exchange’s stablecoin which was issued by Paxos halted minting following directions from regulators. Later, CEO Changpeng Zhao stepped down after the trade and the founder agreed to pay $4 billion in fines to the US Securities and Exchange Commission (SEC).

The crypto analyst said that the chart factors decrease in such a case however pinpointing a selected endpoint is inconceivable. “It is impossible to say exactly if the final target will be $11, $6, $2 or $0.10, it is very hard to predict an exact target but, the chart is pointing lower,” Santana mentioned.

Token value begins to recuperate | Source: BNBUSD on Tradingview.com

Waiting For The Best Timing

Coupled with the indications that the analyst has identified, he made follow-up posts so as to add different elements that might set off a 99% crash within the BNB price. Pointing to the change in administration that occurred round a month in the past, Santana explains that the following transfer by the trade can be referred to as “restructuring.”

He said:

The firm will bear some “restructuring”, adjustments and enhancements within the company community and thus every thing most be frozen… Don’t fear although, the funds are SAFU.

However, Santana explains that this won’t simply occur and that they might look ahead to one of the best time to really perform this transfer. According to the analyst, a drawdown from the present rally can be one of the best time for them.

“So they would let the market correction play out after the SECs announcement late December or early January 2024. Once the market is about to bottom or hits bottom, then the ‘restructuring’ can start,” Santana mentioned. “This would freeze billions of customers funds and allow time for the institutions, the big players, the Spot ETFs to buy Bitcoin low.”

Despite the grim prediction that might crumble the crypto market if it occurred, the crypto analyst believes that that is constructive in the long run. “Life will continue to evolve, nature will pick who leaves and who stays, and time will decide who was right and who is wrong,” Santana concluded.

Featured picture from Portal do Bitcoin, chart from Tradingview.com

Disclaimer: The article is offered for academic functions solely. It doesn’t characterize the opinions of NewsBTC on whether or not to purchase, promote or maintain any investments and naturally investing carries dangers. You are suggested to conduct your personal analysis earlier than making any funding choices. Use info offered on this web site completely at your personal danger.