BNB Price Turns Bullish as CZ Makes His Return: Will It Hit New Highs?

BNB Price Turns Bullish as CZ Makes His Return: Will It Hit New Highs?

The price of Binance Coin (BNB) has shown consistent bullish momentum in recent weeks, though it remains well below its all-time high (ATH) of $720. Previously, BNB saw an unexpected rally even as the broader crypto market struggled, and many analysts expect a similar pattern this time, especially with bullish market sentiment and the recent release of Binance founder Changpeng Zhao (CZ) from prison. Although Binance has continued to operate smoothly in CZ’s absence, many crypto investors have eagerly awaited his return, expecting it to reignite a surge in BNB’s value.

BNB Price Surges Following CZ’s First Tweet Post-Prison Release

Changpeng Zhao, a prominent figure in the cryptocurrency space, resigned from his position as CEO of Binance following ongoing legal challenges facing the exchange. His departure, however, was not the end of his legal troubles. CZ faced a $50 million fine and served a four-month prison sentence, which concluded on September 27. His release, coupled with his first tweet since then (a simple “GM” (Good Morning)) on social platform X, triggered a notable spike in BNB’s price.

Prior to this event, BNB had not been significantly affected by Binance’s legal issues. However, Zhao’s tweet had an immediate impact, pushing BNB’s price from $606.25 to $616.53, its highest level in a month. This rally follows a bullish trend that began after the coin fell to $464.63 in August. Throughout September, BNB gained momentum, rising from $540 to $616 (a total increase of 11%) largely driven by anticipation surrounding CZ’s release. Over the past week alone, BNB surged 4.27%, though the price has since retreated to around $604.

What Lies Ahead: A Continued Rally or a Price Correction?

Like the rest of the cryptocurrency market, BNB is no stranger to volatility, and its recent rally was short-lived. While CZ’s tweet provided a brief boost, the price quickly dipped again.

From a broader perspective, technical indicators suggest that bulls are still in control. Key metrics, including both simple and exponential moving averages, signal strong buying pressure across multiple time frames. Additionally, the Relative Strength Index (RSI) sits at 64.3, indicating a continuation of the current uptrend, though it is approaching overbought territory—a potential warning sign of a reversal.

On the other hand, several indicators, including the Williams %R, Commodity Channel Index (CCI), and momentum metrics, suggest that sellers may soon take the upper hand. These indicators show that BNB may be entering an overbought phase, signaling a potential consolidation or short-term pullback, a pattern that has already begun to emerge on the charts.

Final Thoughts

The return of Binance’s former CEO has certainly stirred excitement within the cryptocurrency community, with many speculating that BNB could soon rally to new heights. This sentiment is further fueled by the anticipation of a broader crypto market rally, often referred to as “Uptober.” However, despite this optimism, it is clear that Binance Coin’s price movements are not solely tied to the exchange or CZ’s legal battles.

While the brief surge to $616 following CZ’s tweet was notable, technical analysis points to a more cautious outlook. For the bulls to maintain dominance, BNB will need to navigate the current overbought conditions, as highlighted by the CCI, Williams %R, and other indicators.