BNB at a crossroads despite bullish signs — Is a move to $600 still possible?

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    BNB has recently pulled back from the resistance line of a months-long consolidation channel. 
    Despite this, a bullish pattern known as the ascending triangle could halt the decline.

As a seasoned crypto investor who witnessed the meteoric rise of BNB back in 2024 when it touched $720, I can tell you that this latest pullback has me both intrigued and cautious. The consolidation channel we’ve been in for months seems to be hinting at a potential downtrend, but the bullish pattern known as the ascending triangle offers a glimmer of hope.

In 2024, Binance Coin (BNB) hit an all-time peak of $720. In order to maintain this upward trend despite market volatility, Binance Coin started purchasing more coins from June onwards. During this period, the price fluctuated within a limited range.

Over the past seven days, BNB initially dropped by 8.49% after breaking free from its resistance level. However, when it touched the underlying support line of a bullish trend, it bounced back by 2.04%.

What’s next for BNB in this volatile market? AMBCrypto offers an in-depth look.

Potential paths ahead for BNB 

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Normally, the pattern inside this consolidation zone indicates that BNB may drop after reaching the resistance point of around $604.9. But, an upward-sloping triangle could signal a potential rise in price as well.

If the ascending triangle pattern persists, Binance Coin (BNB) might aim for a revisit to its resistance level. At present, there are two possible outcomes:

BNB at a crossroads despite bullish signs — Is a move to $600 still possible?

If the current rising trendline’s support doesn’t hold up, there’s a possibility that the token might drop to the $495.8 level, which is the lower boundary of the previous consolidation period.

Limited BNB supply could trigger a rally

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Based on Coinglass’ findings, there’s been a notable reduction in the supply of BNB on various trading platforms as users shift their holdings into personal wallets for secure, long-term storage.

Significantly, traders withdrew approximately $21.64 million in BNB from Binance, an action that may impact the demand for purchasing this cryptocurrency.

BNB at a crossroads despite bullish signs — Is a move to $600 still possible?

Moreover, Open Interest, a measure reflecting market sentiment, suggests traders are slowly but surely buying the coin. A slight uptick of 0.36% has been observed in this regard.

Should the current trend persist – with Netflow showing substantial negativity and Open Interest displaying increasing positivity – it’s possible we might witness robust buying energy, which in turn could foster a potential price surge.

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Read Binance Coin’s [BNB] Price Prediction 2024–2025

RSI U-turn indicates a bullish market shift

The Relative Strength Index (RSI), for short, is a tool used to gauge the pace and direction of price fluctuations in financial markets. It assists in determining if prices are moving too quickly in one direction (overbought or oversold) and can also provide insights into the prevailing market sentiment.

A sharp U-turn in the RSI value indicates a clear shift in market dynamics, with bullish sentiment gaining the upper hand. As the RSI line continues to trend upward, we can expect to see a stronger rally. 

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2024-10-05 00:07