- BNB’s falling wedge pattern and MACD crossover signalled a potential 40% price breakout
On-chain activity, including active addresses and transactions, supported this hypothesis
As a seasoned crypto investor with scars from more than a few market corrections, I find myself intrigued by the current situation of Binance Coin [BNB]. The falling wedge pattern and MACD crossover are indeed compelling indicators, suggesting a potential 40% price breakout. However, as we all know too well in this rollercoaster ride of a market, past performance is not always the best indicator of future results.
I’ve seen Binance Coin [BNB] jump an impressive 6.58% in the past 24 hours, reaching $544.48 on the charts as I write this. This rise has certainly fueled discussions and speculations about a possible breakout.
Indeed, a recent post on what was once known as Twitter by “The Moon Carl” implied that the value of BNB might surge by at least 40%. This prediction is based on the possibility of it breaking free from a six-month-long descending triangle pattern. So, one may wonder, could this be a favorable moment to invest?
The graph for Binance Coin (BNB) showcases a declining wedge formation, which is typically a bullish sign. This pattern has sparked speculation among analysts that the price might surge by approximately 40%.
According to the chart, there was a bullish signal in the Moving Average Convergence Divergence (MACD) indicator. Specifically, the MACD line, which stood at 6.4, moved above the signal line, currently at 6.3. This is an indication of strengthening upward trend.
Furthermore, BNB‘s trading volume significantly increased by approximately 25.3%, reaching a total of $1.8 billion over the past day. This significant increase suggests a growing market fascination. As such, traders might be focusing on the potential resistance around $580, as it appears to be a key level for a possible breakout.
What do on-chain metrics suggest?
Over the past day, on-chain data provided valuable insights into BNB‘s robustness. The number of active wallets increased by 4.03%, amounting to approximately 925,070. Furthermore, transaction volume experienced a surge of 15.8%, resulting in over 4.2 million transactions within the 24-hour period.
The data shows increasing engagement and curiosity among users regarding Binance Smart Chain. Additionally, it’s possible that whales are contributing to the current surge by amassing more tokens in anticipation of a significant price increase.
Could BNB face a pullback?
Although the encouraging indicators suggest optimism, it’s crucial for traders to stay vigilant. The Relative Strength Index (RSI), currently at 69.01, is approaching a level that typically suggests overbought conditions, which may mean BNB could encounter resistance imminently.
If the price doesn’t manage to rise above $580, there might be a reversal or decrease, with possible floor points at approximately $500 and $460 serving as potential areas where the price could stabilize or fall further.
Furthermore, a decrease in the number of active users (addresses) or transactions might suggest waning enthusiasm. Such a trend could weaken the optimistic perspective.
Should traders buy BNB now?
Although the technical signs and blockchain statistics suggest that BNB might experience a substantial shift, it’s crucial to remain cautious due to the current overbought state and the possible resistance level at $580. This could lead to market instability for a brief period.
Yet, BNB stands at a pivotal point. Keeping an eye on this token will be crucial in the forthcoming period.
Read More
- DOP PREDICTION. DOP cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- EUR PKR PREDICTION
- EUR VND PREDICTION
- FXS PREDICTION. FXS cryptocurrency
- SEI PREDICTION. SEI cryptocurrency
- DMTR PREDICTION. DMTR cryptocurrency
- BONE PREDICTION. BONE cryptocurrency
- CORE PREDICTION. CORE cryptocurrency
2024-09-13 10:15