A closely watched crypto strategist is predicting a rapid burst to the upside for Binance Coin (BNB), likely driven by bears betting the utility token will see sustained downward price action.
Pseudonymous analyst Jack tells his 243,100 Twitter followers that BNB is likely due for a bounce as it trades close to its support at $230.
According to the crypto strategist, BNB bears are accumulating into the fourth-largest altcoin by market cap, and will likely serve as fuel for a short squeeze.
“Rejection of the offer yesterday, at low range, is squeezing his chances of positioning so far, and if you make the range low, you risk getting squeezed. A lot of open interest piled up overnight and shorts paid a premium.
A short squeeze occurs when traders who borrow an asset at a certain price in hopes of selling it for a lower price to pocket the difference are forced to buy back the asset they borrowed as momentum moves against them. turns, sparking further rallies.
Looking at Jack’s chart, he seems to predict that BNB will rise to $250 before correcting all the way back to $230.
The chart also shows that BNB bulls are likely to ignite several bounces at the support level before finally crumbling on July 17.
Jack adds that BNB is likely heading for a massive collapse towards the $120 level as it faces multiple issues around the world.
“Given the regulatory pressure from Binance, withdrawal from an ever-growing list of Western countries, changes to rewards and card benefits and/or discontinuation in some countries, legal fees and the like, how realistic does this feel to you?”
At the time of writing, BNB is trading at $236, suggesting a possible drop of nearly 50% should it reach Jack’s downside target.
The crypto analyst is also keeping a close eye on Ethereum (ETH) rival Solana (SOL). According to Jack, the Solana/Bitcoin pair (SOL/BTC) is likely due for a correction after breaching the 0.0006936 BTC ($21.06) resistance.
“I think SOL vs. BTC giving back here is with green. Test that again to see if that DeFi season (decentralized finance) everyone has been talking about for a long time really gets some legs.
Based on the trader’s chart, SOL/BTC could drop to its diagonal support around 0.00056 BTC ($17), where it could bounce back or fall all the way down to 0.0003858 BTC worth $11.71.
At the time of writing, SOL is trading at $22.21.
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