Over the past 24 hours, Binance Coin (BNB) has experienced a notable 6.58% increase, reaching $544.48 at the current time. This surge has ignited discussions about a potential breakout in the near future.
Recently, a social media post by The Moon Carl indicated that BNB could witness a significant price rise of up to 40% if it manages to break out of a descending wedge pattern that has been forming over the past 6 months. This raises the question – Is this a good opportunity to buy?
Analysts have identified a descending wedge pattern on BNB’s chart, which is commonly considered a bullish signal. This pattern is what is fueling predictions of a potential 40% upsurge.
Examining the chart, the Moving Average Convergence Divergence (MACD) has shown a bullish crossover. The MACD line, currently at 6.4, has crossed above the signal line, positioned at 6.3 – signaling an upward trend.
Furthermore, BNB’s trading volume has surged by 25.29%, reaching $1.8 billion in the last 24 hours. This increase serves as additional confirmation of the rising interest from traders. As a result, the $580 resistance level is being closely monitored as the pivotal point for a potential breakout.
Insights from on-chain data
On-chain metrics provide further insights into the strength of BNB. The number of active addresses has increased by 4.03%, reaching 925.07K. Moreover, transactions have spiked by 15.8%, totaling 4.20 million within a day.
These metrics underline the growing user engagement and interest in the Binance Smart Chain platform. The current rally may also be influenced by whale accumulation, as larger holders position themselves ahead of a potential significant price movement.
Is a pullback possible for BNB?
Despite the positive indicators, traders are advised to remain cautious. The Relative Strength Index (RSI) is approaching the overbought zone at 69.01, indicating a potential resistance for BNB in the near future.
If BNB fails to surpass the $580 mark, a pullback might occur, with support levels around $500 and $460 seen as potential downside targets.
Moreover, a decrease in active addresses or transaction volumes could signify a loss of interest, which might weaken the bullish narrative.
Is it the right time for traders to purchase BNB?
While technical patterns and on-chain data suggest that BNB might be gearing up for a significant movement, exercising caution is paramount. The overbought conditions and the resistance level at $580 imply potential short-term volatility in the market.
Nevertheless, BNB is currently at a crucial juncture, positioning it as a key asset to watch closely in the days ahead.