With the broader market holding steady at key levels, Binance Coin (BNB) has reclaimed the $700 mark. Could this recovery signal the beginning of a triangle breakout rally?
As Bitcoin rebounds above critical price levels, the altcoin market mirrors this resurgence with its own recovery rally. Among the top performers, Binance Coin (BNB) has emerged as a focal point, showing strong potential for a breakout rally. This recent surge has led BNB to reclaim a market capitalization of $100 billion, marking a significant turnaround for the token. But the burning question remains: will this rally push BNB up to an ambitious $800 peak? Let’s unpack the details.
Binance Coin Price Analysis
When we dive into the daily chart for BNB, an intriguing triangle pattern emerges, indicating a period of price consolidation. The present recovery is particularly noteworthy, as it traces a bounce off the support trendline—an encouraging sign that trader confidence is growing. The chart below illustrates BNB’s dynamic price action and the formation of this triangle.
Enhancing the bullish sentiment is the emergence of a morning star pattern near the 61.80% Fibonacci retracement level at $674. As BNB gains momentum, it has not only surpassed the key 50-day and 20-day exponential moving averages (EMAs), but the breach of these averages is signaling a robust bullish trend. This indicates that buyers are gaining traction, leading to a more favorable market environment for BNB.
The technical indicators reinforce this narrative, particularly the daily Relative Strength Index (RSI), which has now crossed the halfway mark. This movement reflects increased bullish sentiment among traders, suggesting that further upside potential exists in the days to come. It’s a clear buy signal as per traditional technical analysis principles.
BNB Coin Price Targets
With BNB surpassing the psychological barrier of $700, evidenced by two consecutive positive candles, the token is reinforcing its strength within the current market climate. Given the broader market’s ongoing improvement, BNB is likely to continue its upward trajectory.
That said, it’s crucial to identify immediate resistance levels. The first noteworthy hurdle for BNB is the 78.60% Fibonacci retracement level set at $708. For BNB to catalyze an extended bullish rally, it must first navigate above this resistance trendline. Successfully breaking through this resistance could pave the way for explosive growth in the near future.
Should the rally continue, potential price targets for BNB could reach as high as $750 and, intriguingly, $804. However, the road isn’t without its challenges. On the downside, a significant support level can be found at approximately $674.95. If BNB were to slip below this critical threshold, it could dampen the bullish outlook and inject a degree of uncertainty into the market sentiment.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
