Popular cryptocurrency analyst Ali Martinez has recently noted that the native token of Binance’s ecosystem Binance Coin, could be forming a head and shoulders pattern that could see its price rise more than 25%.
According to Martinez, Binance Coin’s head and shoulders pattern could “ignite a bullish breakout” which would propel it toward the $310 mark if there’s a “sustained close above the neckline at $261.”
BNB is currently trading at $247 after moving up 4.8% over the past week.
A head and shoulders pattern is used by technical analysts to identify a potential trend reversal. It consists of three peaks: a higher peak (head) between two lower peaks (shoulders) and usually indicates a bearish reversal, meaning the price may transition from an uptrend to a downtrend.
Last month, leading cryptocurrency exchange Binance agreed to settle with a coalition of U.S. regulators by paying one of the largest corporate penalties in the country’s history, of $4.3 billion.
The exchange was accused of breaking sanctions and money-transmitting laws and as a result of federal regulators’ actions its founder Changpeng Zhao also had to resign from his role and admit to felony criminal charges of money laundering brought by the U.S. Department of Justice.
Zhao was replaced with Richard Teng, Binance’s former Global Head of Regional Markets, and an independent third-party compliance monitor now oversees Binance’s operations for a five-year period while requiring it to report transactions it processed that were deemed suspicious.
BNB’s price dropped from an all-time high near $700 seen in the 2021 bull run to a low just under $200 over the bear market, but has seemingly slowly been recovering over the last few weeks.
Featured image via Unsplash.
