According to Cointelegraph: The native cryptocurrency of Binance, BNB, has seen a surge in price, hitting a new record high of around $716 after a 4.50% intraday increase, outshining the broader crypto market's gain of 3.5%. This rise seems largely connected to macroeconomic factors and technical indicators rather than a specific fundamental catalyst.
The decline in U.S. bond yields coincides with the recent gains seen by BNB, and by extension, the crypto market as a whole. The U.S. 10-year Treasury note yield, a widely-watched benchmark, dropped to 4.332% from 4.63% a few days prior, during the same period BNB's price appreciated by over 20.75%. This negative correlation suggests that as the traditional financial market faces uncertainty, investors are turning to crypto, considering it as an alternative investment.
Technically, BNB's price surge points to a breakout from its current ascending triangle pattern. When a price vacillates between rising support and horizontal resistance, this indicates an ascending triangle. Typically, in an uptrend, the pattern ends when the price breaks above the resistance and increases as much as the triangle’s maximum height.
As BNB's price breaks above the triangle's resistance, it potentially targets a further rise toward around $800, an approximately 15% increase from current prices. Conversely, the daily relative strength index (RSI) for BNB has reached the overbought threshold above 70, indicating a possible price correction or consolidation.
As BNB’s price tests its 1.618 Fibonacci retracement line at around $708 as resistance, the outlook for a correction toward the 1.00 Fibonacci retracement line at roughly $630, about an 11.50% decrement from current prices, further solidifies.
