🔥 BNB Surges for Third Consecutive Week

BNB Chain’s native token, BNB, continues its upward trajectory for the third consecutive week, achieving approximately 10% weekly gains. On August 22, BNB’s value surged to around $585. Key elements driving this price increase include Binance‘s strategic augmentation of its compliance team, rising expectations of potential interest rate reductions in the United States, and other significant market developments.

🔸 What’s Happening on the BNB Front?

Today’s rally in BNB coincides with Binance’s announcement to significantly enhance its compliance team by 2024. CEO Richard Teng highlighted that at least 20% of the new hires will focus on bolstering the company’s regulatory compliance initiatives. This announcement follows a class-action lawsuit filed by three crypto investors against Binance and its former CEO, Changpeng Zhao, for allegedly failing to prevent money laundering, which resulted in asset losses for the investors.

The price increase of BNB has been accelerated by a higher number of short liquidations compared to long ones since the crypto market crash on August 5. Specifically, the BNB futures market saw over $7.21 million in short liquidations versus $3.86 million in long liquidations.

🔸 #BNB Chart Analysis

From a technical analysis perspective, BNB’s recent gains are part of a rising wedge pattern, characterized by two converging upward trend lines. Rising wedge formations are generally considered bearish reversal patterns that materialize when the price falls below the lower trend line, potentially resulting in a significant drop.

Applying this analysis to BNB’s price chart, $586 emerges as a critical breakdown point. If BNB descends below this threshold with increasing trading volume, it could signal further declines, potentially targeting $480 as the rising wedge breakdown target for August.