Binance Coin (BNB) has broken out of a falling wedge pattern, sparking optimism. BNB has gained 1.24% over the past day to $712.51. This price action has traders excited, with $722 currently acting as a key resistance level. A sustained breakout above this level could push BNB to $800. But as market conditions remain volatile, questions remain as to whether the coin can maintain the momentum.
BNB shows bullish potential
BNB’s price action has been impressive, showing a steady recovery after a period of consolidation. A breakout above the falling wedge could result in a bullish continuation. If BNB breaks out of $722, the next target could be $800. Such a move is likely to attract more buying interest. However, if BNB struggles to sustain above $722, it could drop to the $649 support area. The next few sessions will be crucial in deciding whether this rally can be sustained.
On-chain activity and derivatives data support bullish view
BNB’s on-chain activity is increasing. Active addresses have risen to 751,000, indicating growing network participation. The momentum of active addresses indicates growing investor interest. If this trend continues, it will help support further price gains. In addition, BNB’s derivatives data also adds to the bullish sentiment.
Open interest rose 1.55% to $829.35 million, indicating increased market participation. Options volume surged 27.84%, reflecting stronger expectations for future price action. However, total volume fell slightly by 0.53%, suggesting some caution among traders. Despite the bullish price action, BNB development activity slowed and the developer score declined.
This could affect long-term growth. However, the short-term price action does not seem to be affected. BNB’s breakout above the descending wedge pattern is encouraging. If BNB breaks above $722, it could climb to $800. However, traders must remain alert for signs of weakness as the resistance level remains a challenge.