BNB price breakout imminent as CZ is transferred to Halfway House prison

Binance Coin (BNB) price bulls are nursing a possible breakout to breach the next key resistance. Meanwhile, the latest development in the crypto community is the transfer of Changpeng Zhao (CZ), the founder and former CEO of Binance, from prison to the RRM Long Beach halfway house.

BNB Price Market Drivers: CZ Transfer to RRM Long Beach Halfway House and Rising Weighted Sentiment

The 4.3% increase in BNB price in the last 24 hours and 9.5% in seven days are evidence of an improvement in the market structure. Moreover, volatility is expected to increase with CZ's transfer from prison to the RRM Long Beach halfway house in California. Contrary to what many believe, Zhao is still in prison and has not been released. The crypto mogul was previously held at the FCI Lompoc II prison in California; however, according to the federal inmate tracker, he has been transferred to the new detention facility.

It is worth noting that the RRM Long Beach is classified as a “Residency for Reintegration into Prison (RRM)” which is primarily designed to care for inmates who are nearing their release date, hence the name “halfway house”. Such facilities have no “security level other than voluntary compliance”, however, inmates are required to strictly adhere to the house rules, according to InmateAID.

The confusion surrounding CZ's release is related to his sentencing on April 30, 2024. However, Zhao was later detained in May, meaning he still has 38 days of his sentence to serve before he can be released on September 29. CZ was accused of failing to utilize Binance's resources to prevent money laundering by implementing AML and KYC practices.

The increase in weighted social sentiment, according to Santiment reflects the expected release of Zhao. Binance Coin's price tends to rise with rising sentiment, meaning most comments about the token are very positive. Still, investors should be vigilant as such spikes are often followed by sudden corrections.

Binance Coin Price Analysis: Bullish Revival

BNB price fluctuated at $575 during Thursday's American session after breaking free from the confines of a defensive channel. The token is also above all three moving averages, including the 20-day, 50-day, and 200-day EMAs. Further traders will oppose the uptrend to the $600 resistance and move to $700 should the 20-day EMA confirm a golden cross by crossing above the 50-day EMA. A buy signal from the Moving Average Convergence Divergence (MACD) indicator also lends credence to this bullish thesis.

Conversely, a failure to break the $600 resistance may result in the BNB price correcting in search of liquidity. Possible support areas include the 50-day EMA and the 200-day EMA.

Frequently Asked Questions (FAQs)

No, he was transferred to the RRM Long Beach halfway house before his release.

BNB price rose amid anticipation of CZ’s release and the overall optimistic sentiment in the market.

This will depend on whether the bulls can overcome the resistance at $600 and sustain the uptrend. However, the current technical structure is strongly bullish.