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While the crypto community awaits Sunday’s release of the former Binance CEO Changpeng Zhao, Binance Coin (BNB) buyers appear increasingly cautious. CZ will be a free man from 29 September after completing his fourth-month sentence.
🚨NEW: Binance CEO, Changpeng Zhao, also known as CZ set to be released on Sunday after serving a four month prison sentence.
Meanwhile, BNB has experienced reduced buying volume over the last few days, with buyers hesitating to execute massive positions.
Meanwhile, enthusiasts will likely watch BNB’s performance amid CZ’s release.
Will the awaited moment turn into a “sell-the-news” event? Key indicators and the fading trader activity signal possible price dips towards $522 – a 15.32% from the current price of $602.
BNB’s weakening buying momentum
The Chaikin Money Flow, which tracks cash flows out and into an asset, maintains a downward trend.
While the metric remains positive at 0.13, the decline indicates diminishing buying pressure.
Thus, sellers could dominate buyers as the current trends indicate distrust in near-term price surges.
Furthermore, the Moving Average Convergence Divergence supports the downside stance, swaying below the signal line at press time. That highlights emerging bearishness as the uptrend weakens.
Traders often use this MACD reaction to execute short positions or exit longs.
Other on-chain indicators also support this outlook.
BNB’s Long-Short ratio is 0.877 at press time (according to Coinglass), confirming increasing bearish sentiments.
Further, the Open Interest has plunged 1.75% to $615.28 million.
BNB price performance
The altcoin saw bullish fluctuations over the past day, climbing from the daily low of $581 to $608 before sliding to a press time price of $602.
Source: CoinmarketcapMeanwhile, the declining buying momentum ahead of CZ’s release on 29 September indicates potential price plunges.
The current performance shows Changpeng Zhao’s release might be a “sell-the-news” event.
That’s where investors purchase an asset while anticipating a particular event and offload it once it occurs, leading to bearish pressure.
If Binance Coin maintains the current downward trend in buying pressure, sellers could switch things in their favor.
The altcoin might plummet toward the reliable support barrier at $522.
That would mean a more than 15% decline from BNB’s current price.
Nevertheless, digital assets have performed better this September – a month where bears have dominated over the previous years.
With the “Uptober” around the corner, BNB could weather the bearish storm.
Positive sentiments could strengthen the current bullish wave and catalyze a solid rebound.
That could welcome an approximately 9% increase to $652. A candlestick closing beyond this zone would cancel the forecasted dip.
Thus, enthusiasts should watch trader reactions during CZ’s release on 29 September. “Sell-the-news” developments in the market would see BNB plunging.
Nevertheless, its long-term outlook indicates resilience.
Thus, Binance Coin will likely rebound swiftly bounce-back after possible dips.
Moreover, the predicted October rally will likely keep BNB elevated.
The digital coin could climb past the vital level of $652 and clear the path to $700, translating to a 16.27% uptick from the current prices.
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