Altcoin
BNB Looks Beyond $686: Will the Altcoin Break 2021 Highs?
- The price of BNB has increased by more than 4% in the last seven days.
- Metrics and indicators suggested continued price increases.
Binance coin [BNB] Investors have had a blast as the coin’s price has risen over the past week. In the last few hours, however, the momentum has waned.
While it looked bearish at first glance, it could be an indication of another bullish rally.
BNB’s silent move
After a comfortable 4% rally last week, the currency has slowed down. Second CoinMarketCapthe price of BNB has increased only marginally in the last 24 hours.
At the time of writing, the coin was trading at $602.68 with a market capitalization of over $88.9 billion. The decline in momentum resulted in a decline in BNB’s one-week price volatility.
Apart from this, social metrics have also been affected.
AMBCrypto’s look at Santiment’s data revealed that its social volume dropped dramatically last week. Her thoughtful sentiment also collapsed sharply on May 26.
This clearly indicated that bearish sentiment around the coin was dominant in the market.
Source: Santimento
But the BNB had an ace up its sleeve that could turn the situation around. A bullish pennant pattern appeared on the coin’s price chart in mid-March. Since then, BNB has consolidated within the pattern.
At the time of writing, the altcoin was about to test the upper limit of the pattern. Hence, a breakout above could trigger another bullish rally.
Indeed, if the bullish rally occurs, the coin could soon test its all-time high of $686, touched in 2021.
Source: TradingView
Will BNB be able to break through?
AMBCrypto then analyzed BNB on-chain data to see if it suggested a successful breakout of the bull pennant pattern.
According to our analysis, BNB trading volume has decreased while price volatility has decreased. This suggests a reversal of the trend soon.
Its funding rate also remained low, further increasing the chances of increased volatility in the coming days.
Source: Santimento
The coin’s price was at the 20-day simple moving average (SMA), suggesting a rebound.
Apart from this, Chaikin Money Flow (CMF) has also seen a sharp rise, which suggests that the bulls may soon intervene and, in turn, allow BNB to break out of the bullish pattern.
Source: TradingView
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However, to sustain a bullish rally, BNB needs to clear a strong resistance level near $613. This seemed to be the case, as at that level liquidation would increase significantly, which could cause a price correction.
A successful breakout to the upside would allow BNB to reach new highs.
Source: Hyblock Capital