Analyst's Warning on Three Popular Altcoins

Binance Coin (BNB), known for its technical formations, growing network activity, and recent events related to Binance’s former CEO Changpeng Zhao (CZ), is poised to potentially achieve a new all-time high. Currently, BNB is trading in an ascending triangle pattern, typically signaling an upward breakout. This consolidation hints at a potential surge beyond $692, with some experts setting ambitious targets as high as $775.

BNB Coin Technical Assessment

The BNB's technical evaluation indicates that the coin has been within an ascending triangle formation since mid-May. This formation, characterized by four higher lows and four roughly equal highs, points towards a bullish trajectory. The projected breakout target of $775 is determined by measuring the range between the initial high and low swings within the triangle and extending it from the breakout point. Such a move would mark a significant milestone for BNB, presently valued at $645 with a market cap of $92.1 billion.

Another supportive factor for the positive outlook is the escalating on-chain activities on the BNB network. Recent data demonstrates a 56% surge in daily transfers of BEP-20 tokens from May 19 to June 3. Furthermore, the number of unique addresses on the BNB Smart Chain is steadily rising, averaging 150,000 new addresses daily. This surge in network engagement signifies increased adoption and fresh capital influx, bolstering the optimistic sentiment surrounding BNB.

CZ's Commencement of Imprisonment

The initiation of CZ's four-month incarceration has also influenced BNB's recent price shifts. Found guilty of failing to enforce robust anti-money laundering measures during his tenure at Binance, CZ remains the largest stakeholder in the organization. Despite his legal challenges, news of his imprisonment triggered around a 6% surge in BNB's price and a 24% increase in open interest, reflecting growing investor attention and positivity.

The recent breakout from the symmetrical triangle formation indicates that BNB may ascend to $760 if it sustains momentum above essential resistance levels. This breakout signifies the conclusion of a corrective trend.

A daily candlestick closure below $500 will annul the bullish hypothesis and could trigger a notable price decline of up to 9%, reaching the 50% Fibonacci retracement support level at $454. Upholding the price above the breached trend line is vital for retaining the current positive outlook. It's noteworthy that BNB's previous all-time high rests at $691.