BNB Chain’s native token, BNB, is extending its impressive recovery streak for the third week in a row. With a weekly gain of around 10% to date, BNB has risen to a high of around $585 on August 22. Key factors fueling BNB’s price rally today and over the past few weeks include Binance’s strategic expansion of its compliance team, rising expectations of potential interest rate cuts in the US, and several other developments impacting the market.
What’s Happening on the BNB Front?
BNB rally today Binance’s It coincides with the announcement to significantly strengthen its compliance team in 2024. CEO Richard Teng stressed that at least 20% of new hires will be dedicated to strengthening the company’s regulatory compliance efforts. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
This announcement The move comes about a week after three crypto investors filed a class-action lawsuit against Binance and its former CEO Changpeng Zhao, claiming they have been unable to recover stolen assets due to Binance’s failure to prevent money laundering.
Data source To Coinglass According to the report, BNB’s price appreciation has been further accelerated due to more short liquidations compared to long ones since the crypto market crash on August 5. The BNB futures market, in particular, has witnessed over $7.21 million in short liquidations compared to $3.86 million in long liquidations since then.
In other words, many bearish investors who were expecting the price of BNB to fall were forced to exit their positions when the market moved against them. These short liquidations occur when investors are forced to buy back BNB to cover their losses, putting upward pressure on the price.
BNB Chart Analysis
From a technical point of view BNB’s The gains are notable as part of the price action that occurs inside the rising wedge pattern, which is characterized by two converging rising trend lines. However, rising wedge patterns are considered bearish reversal patterns that resolve when the price breaks below the lower trend line and falls by the maximum distance between the upper and lower trend lines.
Applying the same technical analysis to BNB’s price chart reveals $586 as a potential breakout point. If BNB breaks below this level with increasing trading volume, it could signal further declines and potentially target $480 as a rising wedge breakout target in August.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
