Date: Sat, Nov 23, 2024, 09:10 AM GMT
In the cryptocurrency market today, the prices of major altcoins are beginning to gain momentum as Bitcoin dominance declines. BTC dominance has dropped to 59.40%, down from its recent high of 60.40%, following Bitcoin's historic rally to an all-time high of $99,504 yesterday.
With Bitcoin surging nearly 47% in the past 30 days, attention has shifted to altcoins as they begin their own breakout phases. Top assets like Cardano (ADA) and XRP have already posted significant gains.
Meanwhile, Binance Coin (BNB), the 5th largest cryptocurrency by market capitalization, is garnering attention as it surges by 6% today, reaching a price of $668 with a market cap of $96 billion.
Source: Coinmarketcap
Eyeing a Major Breakout From Cup and Handle
BNB's weekly chart is showing a classic Cup and Handle pattern, a widely recognized bullish continuation formation in technical analysis. This pattern often signals a strong potential rally once the price breaks above the resistance level.
1.The Cup:
The "cup" is a rounded bottom formation that starts from a prior high, followed by a prolonged period of decline, accumulation, and eventual recovery. For BNB, the cup began after its all-time high of $670 in May 2021 and developed over the last two years as the price gradually rebounded.
2.The Handle:
The "handle" forms as the price consolidates just below the key resistance level. This phase is marked by smaller, sideways-to-downward price movements, reflecting the final shakeout of weaker hands before a breakout.
For $BNB , the handle phase has played out in the past few weeks, with the price hovering near the $669–$720 resistance zone.
Is a Bullish Rally On Horizon?
If BNB breaks above $680 and $720, the Cup and Handle pattern suggests a 70%–80% upside from the breakout point. This would place the next price target in the range of $1,200–$1,300. The target is derived from the depth of the cup and projected upwards.
Given BNB’s role as the native token of Binance, the largest cryptocurrency exchange, the token holds significant intrinsic value. Combined with bullish market conditions, this breakout could establish BNB as one of the top-performing assets in the ongoing altcoin rally.
Conclusion
Binance Coin (BNB) is on the verge of a potential breakout from a long-term Cup and Handle pattern, a bullish setup that could push the price toward the $1,200 mark. With Bitcoin dominance declining and altcoins gaining traction, BNB could emerge as a standout performer.
As always, investors should remain cautious and conduct their own research before making any investment decisions. The cryptocurrency market remains highly volatile and unpredictable.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always perform your own research before investing in cryptocurrencies.
