Following a breakout from a prolonged parallel channel, Binance Coin [BNB] demonstrated significant strength, indicating a bullish trend as it gained traction within the market. With a current trading price of $718.35, the altcoin saw a 0.40% increase in the past 24 hours, positioning it just 9.44% below its highest peak of $793.35.
Therefore, the primary question that arises is – Can BNB sustain its upward path and surpass its previous peak?
Breaking Out of the Parallel Channel and Price Trajectory
The breakout from the parallel channel by BNB marked the conclusion of a period of consolidation that restricted price movements for an extended period. Surpassing the crucial resistance level of $650 has now opened up avenues for potential growth.
Furthermore, the current price action showcases robust support from buyers. The next critical barrier to watch out for is at $750, followed by the psychological milestone of $800. Maintaining this momentum could potentially pave the way for a new record high, with $850 emerging as the subsequent major target.
Boost in BNB’s Technical Indicators
An analysis of the technical indicators presented a mix of signals, albeit with promising indications. The weekly Relative Strength Index (RSI) stood at 64.82, pointing towards an increase in buying pressure while still below the overbought threshold of 70.
Moreover, the Bollinger Bands signaled an expansion in volatility as the price repeatedly tested the upper band. It is worth noting that such testing often leads to short-term retracements.
Therefore, traders are advised to remain alert for corrections while observing consolidation above $700, which could indicate a more robust continuation of the bullish trend.
Social Volume and Sentiment in the Market
Although there was a decline in social volume from a recent peak of 169 to the current level of 108, this shift might suggest a transition from hype-driven trading to sustained institutional involvement.
A decrease in social discussions typically aligns with price stability, laying a healthier groundwork for long-term growth. However, participants in the market should be attentive to any uptick in conversations, as heightened social activity often precedes significant price movements.
Increasing Interest in the Derivatives Market
The derivatives market highlighted a growing interest among traders in BNB. Trading volume surged by 3.24% to reach $1.59 billion, while Options Open Interest witnessed a remarkable increase of 62.49%, reflecting optimistic sentiment.
Furthermore, a 47% rise in Options volume indicated a willingness among traders to speculate on potential price upswings. Even though Futures Open Interest saw a marginal decline of 1.44%, the broader data from derivatives supported a positive outlook for BNB’s price.
Is BNB Ready to Break above $793?
Considering the current scenario, BNB seems well-prepared to surpass its previous all-time high of $793.35, supported by its technical breakout, escalating interest in derivatives, and stable sentiment. With sustained momentum and firm buyer backing, there is a strong likelihood for BNB to go beyond its peak and potentially steer the market towards its next bullish phase.