Binance Coin (BNB) has been consolidating for the past four days. However, as of the time of writing, it has dropped below the critical exponential moving average (EMA) on the daily chart. Nevertheless, based on its key on-chain metrics and analysts' views, the BNB price may break through the $1,000 target.
Analysts predict that the BNB price will break through $1,000.
In the latest post on its X page, popular influencer Rose Premium Signals' Charts has set a target price of over $1,000. According to analysts, the BNB price has broken out of a descending wedge, which could trigger a temporary pullback, followed by a bullish rebound to $1,048.
According to the analyst's weekly chart, the token may pull back after facing resistance at the psychological level of $660. As trading volume continues to decline, the beginning of weakened upward traction could open the path for a significant mid-term drop to $508.
However, if the BNB price can rebound to the current level soon, the resulting momentum may push the price up to $1,048, with potential pullbacks to $743 and $903. That is to say, if the price falls to a low of $436, the analysis from Rose Premium Signals will become invalid.
To obtain the price target for Binance Coin in the descending wedge pattern, we first locate the wedge shape on the chart. Secondly, we calculate the height of the wedge, which is the vertical distance between the highest and lowest points of the wedge. Thirdly, we identify the price breakout point on the wedge. Finally, we use the previously determined wedge height to set our target from the breakout point.
However, from the current market perspective, the bullish outlook must be cautious, and it is only viable if BNB maintains stable trading volume.
At the same time, on-chain metrics have also increased the credibility of the upside potential.
The bullish/bearish ratio is optimistic, favoring a rise in BNB.
The long-short ratio is an indicator that measures the market momentum of an asset by comparing the value of open long positions to the value of open short positions. To obtain this ratio, we simply divide the value of open long positions by the value of open short positions. Typically, a long-short ratio above 1 indicates bullish sentiment, while below 1 indicates a bearish market tendency.
According to the latest data from Coinanalyze, the bullish/bearish ratio for BNB in the 24 hours preceding this writing is 3.3. This indicates that investors are optimistic about the token's rise, which may increase its upside potential.
In summary, after a four-day accumulation period, the BNB price is currently at a turning point. Additionally, a drop below the $640 mark could open the path for a decline to the $508 support level. However, significant upside potential could lead to a 40% increase to $1,048.
However, the collapse in volume warns traders to prepare for some setbacks. If interested in trading BNB, it is important to have your own targets and stop losses. Monitoring these levels will help you avoid getting trapped in lower leverage during the next market fluctuations.