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Binance Price Falls 5% After Changpeng Zhao Sentencing but Bullish Wave Count Predicts New BNB All-Time High

Last Updated May 1, 2024 2:25 PM
Valdrin Tahiri
Last Updated May 1, 2024 2:25 PM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • Former Binance  CEO Changpeng Zhao (CZ) was sentenced to a four-month prison sentence.
  • The BNB price has traded inside a symmetrical triangle since its yearly high of $645 on March 14.
  • Is the BNB correction finally over, or will the price break down?

On May 1, founder and former CEO of Binance Changpeng Zhao was sentenced to four months in prison. Despite arguments by the Department of Justice, the judge decided to give a more lenient sentence to Zhao, citing no evidence that he was aware of any illegal activities.

Shortly after the announcement, the BNB price fell 5%, though it still trades inside the pattern existing for 53 days. Since BNB trades in a neutral pattern, the question arises if its resolution will tilt upward or downward.

BNB Price Falls After CZ Sentencing

The BNB price has decreased inside a symmetrical triangle since reaching a yearly high of $645 on March 14. The symmetrical triangle is considered a neutral pattern, and both its support and resistance trend line have been validated numerous times (green & red icons). More recently, the triangle’s resistance rejected the price on April 27, starting the ongoing downward movement.

BNB Price Symmetrical Triangle Pattern
BNB/USDT Daily Chart | Credit: TradingView

Even though the price is approaching the support trend line at $530, technical indicators give a bearish reading. This is evident in both the RSI falling below 50 and the MACD making a bearish cross (red circle).

BNB Price Prediction: Breakout or Breakdown?

The wave count since June 2022 suggests the BNB price is correcting as part of wave four in a five-wave upward movement (white). Wave three extended and the sub-wave count is in black.

The presence of a symmetrical triangle perfectly aligns with this count, since such a triangle is the most common pattern in a wave four.

Projecting the length of wave one gives a target of $756 for the top of wave five. This is an increase of 38% from the current price and will constitute a new all-time high. A breakout from the triangle will confirm the count.

Long-Term Wave Count
BNB/USDT 2-Day Chart | Credit: TradingView

Despite the bullish BNB wave count, the indicator readings do not align with the count, as evidenced by the falling MACD and RSI. So, a decrease below the previous low of $509 will invalidate the count, pointing to a deeper correction.

In that case, the BNB price can fall to the next support at $476, created by the 0.382 Fibonacci retracement support level.

May Can Bring a New All-Time High

To conclude, it is possible BNB is nearing the end of its sideways movement, contained inside a symmetrical triangle. The prevailing wave count suggests that the triangle encompasses the entirety of wave four. Its breakout could signal the beginning of a new upward movement causing BNB to surge to a new all-time high by May.

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