Binance Coin (BNB) Price Analysis: CZ Release Rumors Debunked, Price Eyes $720 Breakout
The BNB price experienced a notable pullback amid the early week sell-off, dropping from $605 to $553, marking an 8.6% loss. However, the correction was short-lived as the broader market rebounded. Rumors circulated about Binance’s former CEO, Changpeng Zhao, being released from jail next month, which sparked a surge in demand around the $555 level, supporting the current recovery.
However, these rumors were debunked as it was confirmed that Changpeng Zhao is not set for early release. He was sentenced to four months in prison on April 30, 2024, but due to procedural delays, his term did not begin until late May. He is currently serving time at the Federal Correctional Institution Lompoc II and is scheduled for release on September 29, 2024.
Despite the debunked rumors, the BNB price is eyeing a breakout towards $720 amid a wedge pattern formation. The recent market recovery saw the Binance coin bounce back from the pattern’s support trendline at $454, surging 32% to $603 before a slight pullback. The price currently stands at $578 with a market cap of $84.4 billion.
The speculation of CZ’s release potentially boosting BNB’s price and fueling the ongoing rally suggests that if buying momentum continues, BNB could surpass its all-time high of $720.67 and approach the wedge resistance near $850. A breakout from this resistance would signal a sustainable directional trend. However, if the overhead trendline persists, the sideways trend could prolong and trigger a fresh correction.
Overall, the false rumors about Changpeng Zhao’s early release may have caused temporary volatility in BNB’s price, but the technical analysis indicates potential for a significant price movement in the near future.
