Interest in Binance Coin (BNB) has started to pick up again, with less than 20 days to the release of ex-Binance CEO Changpeng “CZ” Zhao. Fueled by renewed market excitement, BNB’s price resisted going below $487 and has increased to $520.
However, several indicators suggest that the coin price might not stop at this level. Instead, it is likely to trade much higher.
CZ Holds the Key to Binance Coin Rally
Zhao, who founded Binance in 2018, was sent to jail in April. Then, a court in the US found the former Binance executive guilty of several crimes tied to the exchange. Following the verdict, BNB’s price dropped from $590 to $560.
While BNB’s price hit a new all-time high afterward, CZ’s anticipated return on September 29 appears to drive surging interest in the cryptocurrency.
According to Santiment, BNB’s Open Interest (OI) was under $325 million last Friday. As of this writing, OI has risen to $342 million, indicating that market participants are increasing their positions and gaining more exposure to the coin.
Historically, an increase in Open Interest during a price rise strengthens the uptrend. The image above clearly shows this, highlighting the strong correlation between BNB’s upward movement and increased net positioning.
Thus, if Open Interest continues to jump, BNB’s price might also follow.
Read more: Who Is Changpeng Zhao? A Deep Dive Into the Ex-CEO of Binance
Interestingly, CryptoGodJohn, an analyst on X, seems to share a similar sentiment, noting that CZ’s return from jail is the easiest way for BNB to climb above $600 again.
“With CZ to be released from jail in the next 2 weeks & Q4 starting soon, I think this is one of the easiest plays in the market that not many are talking about yet,” the analyst said.
BNB Price Prediction: If $600 Comes True, $700 Is Possible
Based on the daily chart, BNB shrugged off the earlier downturn and bounced from $487. This notable rebound suggests that bulls aggressively defended the support, which was crucial to the coin’s rally to $603 back in July.
Currently, the uptrend has raised the price to almost the same region as the 20-day Exponential Moving Average (EMA). As seen in the chart below, the coin appears ready to surpass the resistance at $518.
Should bulls shove the price above the 20 EMA (blue), BNB’s price could rise toward $631. If this price increase coincides with the CZ’s jail release, the value of the cryptocurrency might climb to $724.
Read more: BNB Crypto Storage: Best BNB Wallets to Consider in 2024
However, it’s important to note that BNB might encounter resistance at $575. Additionally, Binance and CZ’s ongoing legal troubles could impact the coin’s performance. If these issues resurface near Zhao’s release, BNB may face rejection around the $575 level, potentially leading to a price drop to $458.
The post BNB Price Eyes $600 as CZ Jail Release Sparks Market Interest appeared first on BeInCrypto.
