The price of Binance Coin has broken out into a bullish trend, with $825 as the expected goal.
The increased trading activity in BNB since mid-August coincides with a growing open interest, suggesting a capital infusion.
If the weekly candlestick closes below $606.70, the bullish thesis would be rendered invalid.
Tuesday saw a little decline in Binance Coin (BNB) trading as the cryptocurrency retreated from last week's 12.5% surge after breaking above an ascending triangle formation on the weekly chart. According to the technical analysis, the price is likely to break out to the upside and keep rising, with $825 being the next objective.
New on-chain evidence adds credence to BNB's surge. Its trading volume hit a record high since mid-August, and its open interest is on the rise, suggesting a capital infusion.
With a weeklong surge of more than 12.5 percent, Binance Coin's price breached and closed above the ascending triangle formation on the chart. Starting in the middle of July, two trendlines were drawn to link the weekly chart's swing points between two lower lows and numerous equal highs, resulting in this pattern.
In order to determine the goal, one often measures the distance from the first daily high and low to the breakout point. This technical pattern breakout is favorable to the bulls. It has been steadily rising this week, trading at around $650.
After retesting the breakout level and finding support around the $606.70 weekly level, BNB has the potential to rally to its all-time high (ATH) of $721.80, then continue the rally to build a new ATH of $825.65, which is the technical goal of the pattern.
Bullish momentum is gathering steam, according to the Relative Strength Index (RSI) momentum indicator on the weekly chart, which is reading 60. This is over the neutral level of 50 but still far below overbought levels.
The current uptick in liquidity and interest among traders in Binance Coin bodes well for the future of the platform. According to statistics from token terminals, the daily trading volume of BNB Chain reached a new high of $2.29 billion on Sunday, the biggest since mid-August, up from $807.47 million on November 4.
An additional piece of evidence that supports the bullish thesis is the growing Open Interest (OI) of Binance Coin. Based on statistics from Coinglass, the open interest in BNB at exchanges for futures surged to $797.46 million on Tuesday, the biggest level since mid-June, up from $575.96 million on Saturday. When OI rises, it means more money is buying into the market, which is a positive sign.
If BNB closes the weekly candlestick below $606.70, the bullish thesis would be rendered invalid, even if on-chain measurements and technical analysis support the bullish forecast. Because of this change, the price of Binance Coin can fall another 10.5% and hit $543.60 again, its weekly low.