BNB Price Dips 0.75% Amid Low Sunday Volume, Eyes $700 Target

The price of BNB dropped 0.75% during a low-volatility Sunday trading session, currently hovering around $597. This minor pullback aligns with many major altcoins and likely represents a brief consolidation period before bulls attempt to regain momentum. Despite the recent release of Binance founder Changpeng Zhao (CZ), BNB’s ability to hold key support levels suggests potential for further upside.

CZ’s Release and Future Plans: Catalyst for $700 BNB?

The U.S. Bureau of Prisons (BOP) confirmed that Binance founder Changpeng Zhao was released from a California correctional facility on Friday. CZ had been serving a four-month sentence for violating the Bank Secrecy Act (BSA) due to inadequate know-your-customer (KYC) procedures at Binance.

News of CZ’s release sparked a 1.5% intraday gain for BNB, pushing the price to test the $614 level. In his first public statement since release, CZ shared insights into his future plans:

“Will continue to invest in blockchain/decentralized technologies, AI, and biotech. I am a long term investor who care about impact, not returns.”

He also expressed growing interest in philanthropy and plans to continue work on his book. While CZ’s statements don’t directly impact BNB’s price, his assertion that Binance is thriving without his active involvement could boost investor confidence.

BNB Technical Analysis: $800 in Sight?

BNB’s price action over the past three weeks has been decidedly bullish, surging 28% from $482 to a high of $618. This recovery has formed an inverted head and shoulders pattern on the charts, with a decisive breakout above the neckline occurring on September 23rd.

Since the breakout, BNB has traded sideways as it attempts to establish support above the former resistance level. If buying pressure persists, this post-breakout rally could propel BNB towards the $800 level, representing a 34% gain from current prices.

The Bollinger Bands indicator shows expansion to the upside, suggesting that bulls remain in control and have room to push prices higher.

Potential Risks

Despite the overall bullish sentiment, BNB’s struggle to decisively hold above $600 following CZ’s release raises the possibility of a bull trap. A breakdown below the neckline support at $595 could trigger a correction towards the $528 level.

Frequently Asked Questions (FAQs)

How might CZ’s post-release plans impact BNB’s price?
While CZ’s investments in blockchain, AI, and biotech don’t directly affect BNB, his continued influence in the crypto space could boost investor confidence in the Binance ecosystem.

What technical pattern suggests a potential rally for BNB?
An inverted head and shoulders pattern has formed on BNB’s charts, indicating the possibility of a 35% rally that could push the price towards $700 if the breakout holds.

Are there any bearish signals to be aware of?
Despite the bullish momentum, long-wick rejection candles and difficulty maintaining prices above $600 suggest caution, as a bull trap remains possible.