In the midst of prevailing bearish sentiment, a highly regarded crypto analyst known as Jack is making a compelling case for a potential rebound in Binance Coin (BNB). With bears aggressively shorting the popular utility token, the analyst believes that a short squeeze could ignite a significant upward move. This article delves deeper into the analyst’s insights, highlighting the potential for a BNB recovery and shedding light on the dynamics of a short squeeze within the cryptocurrency market.
The concerns surrounding Binance Coin’s outlook have caught the attention of investors and analysts alike. One of the major factors contributing to the uncertainty surrounding BNB is the regulatory pressure faced by its parent company, Binance. As a leading cryptocurrency exchange, Binance has encountered increasing scrutiny from regulatory bodies worldwide. This heightened regulatory environment has led to Binance withdrawing its services from several countries, limiting its reach and potentially impacting the demand for BNB.
Renowned Crypto Analyst Eyes Binance Coin’s Rebound Amidst Bearish Sentiment
Against the backdrop of a cryptocurrency market dominated by bearish sentiment, prominent crypto analyst Jack has garnered attention by suggesting a potential bounce for Binance Coin (BNB). Recognizing the coin’s proximity to its support level at $230, Jack believes that BNB is ripe for a rebound.
The analyst points out that bearish sentiment has prompted a surge in short positions on BNB, making it a prime candidate for a short squeeze. A short squeeze occurs when traders who have borrowed an asset with the intention of selling it at a lower price to generate profit are compelled to buy back the borrowed assets due to a sudden price surge. This buying pressure can trigger further upward momentum in the price of the asset.
Jack’s analysis indicates that BNB is likely to experience a surge to $250 before undergoing a correction, potentially retracing back to the $230 support level. The accompanying chart reveals a pattern suggesting that BNB bulls will initiate several rebounds at the support level before a potential breakdown around July 17th.
Concerns Surrounding Binance Coin’s Outlook
In addition to the potential for a short squeeze and subsequent rebound, Jack raises several concerns about the future of Binance Coin. Regulatory pressures on Binance, the parent company of BNB, and its withdrawal from multiple countries are among the factors that could impact the token’s performance. Furthermore, changes to rewards and card perks, along with legal costs, contribute to an overall uncertain landscape for Binance Coin.
Should the downside target of $120 materialize, BNB could face a substantial decrease of nearly 50% from its current trading price of $236. As investors assess the risks and rewards associated with BNB, these concerns add an additional layer of complexity to the investment landscape.
Solana’s Correction Against Bitcoin (BTC) Draws Attention
Apart from BNB, Jack closely monitors the performance of Solana (SOL), a prominent contender in the cryptocurrency space and a rival to Ethereum (ETH). Jack’s analysis suggests that the Solana/Bitcoin pair (SOL/BTC) may be due for a correction after encountering resistance at 0.0006936 BTC ($21.06).
Based on Jack’s chart analysis, SOL/BTC could potentially retrace towards its diagonal support level at approximately 0.00056 BTC ($17). From there, the pair may experience a rebound or face a more significant decline to 0.0003858 BTC ($11.71). The outcome at these critical levels will provide insights into the strength of the ongoing decentralized finance (DeFi) season.
As of now, SOL is trading at $22.21, capturing the attention of investors and analysts alike as they evaluate the potential for price movements and opportunities in the cryptocurrency market.
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