Binance Coin [BNB] made significant headway above key resistance at $634.85, signaling the possible start of a new bullish trend.
At press time, BNB is trading at $653.79, up 5.79% over the past 24 hours. The breakout has caught the attention of traders, leaving many wondering if the coin can maintain its upward trajectory and move towards higher targets.
With key technical indicators flashing bullish signals, all eyes are on whether BNB can sustain above this crucial level.
Price Action Analysis: Is the Breakout Sustainable?
BNB’s recent price action shows a decisive breakout of the symmetrical triangle pattern that had kept the coin’s price range-bound for several weeks.
A symmetrical triangle usually signals consolidation before a breakout, and the price of BNB has surged above the critical resistance of $634.85.
This level has now turned into support, which is crucial if BNB is to continue moving higher. The question now is whether BNB can maintain this upward momentum and push towards the next resistance zone (around $680 and $700), or if the price will face a retracement.
BNB Technical Indicators: What Do the Charts Show?
BNB’s relative strength index (RSI) is 58.84, which shows that the asset is slightly in bullish territory but not yet overbought. This suggests that there is room for further gains before reaching overbought conditions, which could lead to a price correction.
Furthermore, the MACD showed a bullish crossover, strengthening the possibility of continued gains. These indicators suggest that BNB is well positioned for further gains as long as it can hold support above the breakout level.
Social Volume: Is interest growing?
Social volume has increased slightly over the past 24 hours from 0.565 to 0.707. While this increase is modest, it reflects growing interest and engagement in the token.
Increased social activity is usually accompanied by price increases, which suggests that more traders and investors are starting to pay attention to BNB’s recent share price action. If this trend continues, it could drive BNB higher in the short term.
Market Sentiment: What Does Open Interest Tell Us?
Open interest surged +6.74% to $973.1 million. This growth suggests that more traders are opening positions in anticipation of continued price increases, reflecting growing confidence in BNB’s bullish outlook.
An increase in open interest suggests that traders anticipate further price movement and are positioning themselves for potential gains.
Hence, this positive market sentiment reinforces the view that as long as BNB sustains above the recent breakout levels, it has the potential to rise further.
Conclusion: Will BNB rise further?
BNB’s breakout above $634.85, coupled with bullish technical indicators and rising open interest, suggests that the coin is poised for further gains. Increasing social volume also suggests that market interest is growing, which could fuel further gains.
Therefore, BNB seems poised to maintain its bullish trend in the short term. However, traders should remain cautious and watch out for any signs of resistance or pullback as the price approaches key levels.