BNB Price Crash Could Be A Buying Opportunity: Here’s Why

BNB price has suffered a strong reversal in the past few days. Investors started to book profits after the surge reached an all-time high.

Binance Coin price has moved into a correction after falling 13% from its highest level this month. However, its strong fundamentals suggest that this decline could be brief and lead to a strong bullish breakout.

BNB Price Technical Analysis Suggests A Rebound May Happen

The daily chart reveals that the BNB price surged to a record high of $1,081 this month. It formed a doji candlestick pattern followed by a significant decline as the crypto market crash intensified.

The decline also happened amid profit-taking among investors who saw it as highly overbought. With this, the Relative Strength Index (RSI) reached a high of 80.

Also, the two lines of the Percentage Price Oscillator have made a bearish crossover. This usually points to more downside.

Binance Coin price reversed after reaching the overshoot point. This level was marked at $1,062 by the Murrey Math Lines tool. BNB price has moved below the 23.6% Fibonacci Retracement and is now targeting the 50-day EMA at $900.

The coin may experience a slight drop soon. It could reach the 50% Fibonacci retracement level at $800. This level may be a strong support.

After that, the uptrend could resume toward its all-time high. This target coincides with the significant support and resistance levels of the Murrey Math Lines.

Changpeng Zhao’s Pardon Would be Bullish for the BNB price

A possible bullish catalyst for BNB is political support. Speculation is growing that Donald Trump may pardon Binance founder Changpeng Zhao (CZ). Such a move could boost investor confidence and lift the BNB crypto.

A Polymarket poll with over $2.9 Million in assets places the odds of a pardon at 34%. A similar survey on Kalshi places the odds at 35%.

Trump may pardon CZ because of their ties, with his entities having a substantial role in the World Liberty Financial. It is assumed that Binance holds most of the USD1 stablecoins, something that Trump may be aware of.

Trump could gain significantly by aligning with CZ. Binance’s influence makes it a key player in the crypto industry. This could be why the company is nearing a deal with the Justice Department to avoid an external monitor.

According to Bloomberg, a CZ pardon would be bullish for the BNB price. This would clear regulatory hurdles and boost the odds that the SEC will approve spot BNB ETFs later this year.

BSC Network’s Active Addresses and Transactions are Growing

Binance Coin price will also go well because of its network’s growth and ecosystem. Nansen data reveals a sharp rise in network activity. Transactions surged 41% in the past 30 days, reaching 385 million.

This makes it the second most active network after Solana, which handled nearly 2 billion transactions. Another data shows that more users are interacting with the BSC Chain.

Active addresses jumped by 11% in the same period to 36 million. At the same time, the amount of fees collected by the network rose almost 80% to nearly $20 million.

BSC network has been expanding its influence. It’s gaining market share in decentralized finance and gaming. Real-world asset (RWA) tokenization is also driving its growth.

The other bullish catalyst for the BNB price is that the network is preparing to implement another quarterly token burn. Data shows that the network will incinerate 1.595 million coins, currently worth over $1 Billion, in the coming weeks.

BSC burns over $1 Billion worth of tokens every quarter. This supports its goal of cutting total circulation down to around 100 million.

The most likely scenario is where the Binance Coin price will continue falling briefly as investors book profits. Then, it will bounce back later this year.