Altcoins
BNB looks beyond $686: will altcoin break 2021 highs?
- The price of BNB has increased by more than 4% in the last seven days.
- Measurements and indicators suggested a continued rise in prices.
Binance Coin [BNB] Investors have had a good time as the price of the coin has increased over the past week. However, the momentum has lost steam in recent hours.
Although this seems bearish at first glance, it could be a sign of a new bullish rally.
The silent gesture of the BNB
After a comfortable 4% rally last week, the token has slowed down. According to CoinMarketCapthe price of BNB has only increased marginally in the last 24 hours.
At the time of writing, the coin was trading at $602.68 with a market cap of over $88.9 billion. The decline in momentum has led to a decline in BNB price volatility over a week.
Apart from this, social measures have also been affected.
AMBCrypto’s review of Santiment data revealed that its social volume declined sharply last week. His level-headed sentiment also fell sharply on May 26.
This clearly indicates that bearish sentiment around the coin is dominating in the market.
Source: Santiment
But BNB had a trick up its sleeve that could turn things around. A bullish pennant pattern appeared on the coin’s price chart in mid-March. Since then, BNB has consolidated itself within the model.
At press time, the altcoin was on its way to test the upper limit of the pattern. Thus, a break above could trigger a new bullish rally.
In fact, if the bull rally occurs, the coin could soon test its all-time high of $686, which it touched in 2021.
Source: TradingView
Will BNB manage to break out?
AMBCrypto then analyzed BNB’s on-chain data to see if it hinted at a successful breakout of the bullish pennant pattern.
According to our analysis, BNB’s trading volume has decreased while its price volatility has decreased. This suggests an upcoming trend reversal.
Its funding rate also remained low, further increasing the risks of increased volatility in the coming days.
Source: Santiment
The coin’s price was at its 20-day simple moving average (SMA), hinting at a rebound.
In addition to this, the Chaikin Money Flow (CMF) also saw a sharp rise, suggesting that the bulls may soon step in and, in turn, allow BNB to break out of the uptrend.
Source: TradingView
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However, in order to sustain a bullish rally, BNB must surpass a strong resistance level near $613. This appears to be the case as liquidation would increase sharply at this level, potentially leading to a price correction.
A successful breakout above would allow BNB to aim for new highs.
Source: Hyblock Capital