Back in 2024, Binance Coin (BNB) hit a remarkable peak at $720. To maintain this positive momentum during market uncertainties, it entered an accumulation phase starting in June, where its price fluctuated within a tight range.
Recent fluctuations saw BNB dropping by 8.49% after moving away from the resistance line, only to bounce back by 2.04% upon hitting the support line of the bullish pattern.
What lies ahead for BNB in this volatile market environment? CryptoCrypto delves deep into the analysis.
Possible Trajectories for BNB
The current consolidation channel indicates a potential downward trend for BNB following a rebound from the $604.9 resistance level. However, the presence of an ascending triangle suggests a possibility of a bullish surge.
If the ascending triangle remains intact, BNB might target a return to the resistance line. At this juncture, two scenarios emerge: in case of strong bullish momentum, BNB could soar to $720 or even beyond to break its previous all-time high.
Conversely, if the support levels of the ascending channel fail, BNB could drop to $495.8, where the consolidation’s support line is situated.
Reduced BNB Supply Could Ignite a Rally
Coinglass reports a significant decrease in BNB availability across various exchanges as traders shift their holdings to private wallets for long-term storage.
A noteworthy instance is the withdrawal of $21.64 million in BNB from Binance, a substantial sum that could impact buying pressure in the market.
Furthermore, the Open Interest data, which reflects market sentiment, indicates a gradual increase in traders’ interest to buy BNB, with a modest uptick of 0.36% observed.
If this trend persists, accompanied by a persistently negative Netflow and a more positive Open Interest, a strong buying momentum could emerge, paving the way for a potential rally.
RSI Reversal Signals Bullish Turnaround
The Relative Strength Index (RSI) acts as a momentum gauge, highlighting the speed and direction of price movements to detect oversold or overbought conditions and overall market sentiment.
An abrupt reversal in the RSI value suggests a definitive change in market dynamics, with bullish sentiment taking the lead. As the RSI trend continues upward, a robust rally can be expected.