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Contrary to other major altcoins that have made significant gains, surpassing their prices in January this year, Binance‘s BNB continues to remain under selling pressure after suffering major losses due to a troubling news flow. While investors speculate about when BNB could recover, a warning came from experienced crypto analyst Ali Martinez.
Binance’s BNB Under Regulatory Pressure
The first and most important factor that kept BNB’s price under pressure was the announcement in early June this year that the U.S. Securities and Exchange Commission (SEC) had filed a lawsuit against the cryptocurrency exchange Binance. This announcement sent BNB off a cliff, wiping out all of its gains at that time and causing the altcoin’s price to fall below its annual opening level. For several months after the news, BNB mostly traded sideways, and there was little volatility until late November, except for a few minor spikes and drops.
The resignation of Changpeng Zhao from his position as CEO of the cryptocurrency exchange as part of an agreement with the U.S. government on November 21 also fueled the decline in the altcoin. Since then, BNB’s price has been hovering around $230, and many investors are wondering if and when the altcoin will reverse its trend and enter a bullish phase.
Is It the Right Time to Invest in BNB?
On the weekly price chart of Binance’s BNB, a clear descending triangle formation is seen. Experienced crypto analyst Ali Martinez implied in his assessment on his personal X (formerly Twitter) account on December 10 that the altcoin’s price has not yet escaped the downward momentum.
A descending triangle formation is a chart formation that occurs when the resistance line connecting the peaks is sloping downwards and the support line maintains its horizontal position, and it is a continuation formation for a downtrend.
Martinez added that it might be wise for investors to stay away from BNB for a while longer due to its recent performance. However, he stressed that investors interested in purchasing BNB should wait for it to close a candle above the price level of $260, where Zhao resigned, as this would likely confirm that the altcoin has entered a bullish phase.
