Binance Coin has become the leading cryptocurrency for price action, smashing through its previous all-time high and putting on an extra 8% from that point onwards. As $BNB soars into price discovery, just how far can it go?
Positive factors behind $BNB breakout
If altseason has indeed begun, and to all intents and purposes it certainly looks as though it has, $BNB is one of the leading lights. Several factors are contributing to the strong price action currently being experienced by $BNB. Chief among these are a 20% rise in Total Value Locked (TVL), deflationary pressure from token burns, Binance exchange dominance, and an ongoing technical price breakout.
$BNB reaches top of channel – rejection from here?
Source: TradingView
The 4-hour chart for $BNB shows how the price broke out beyond the long-time descending trendling, broke through the horizontal level of $640, turning it into support, and then bounced around between here and the next resistance of $674 for quite some time.
Once the breakout came, the price headed higher within an ascending channel, piercing through the all-time high at $793, before getting to a new all-time high of $861.
As can be seen in the chart above, this is the top of the channel, and so some kind of rejection will probably follow from here. The chances are that this might go back to retest the previous all-time high before continuing higher.
$BNB $1,000 price target
Source: TradingView
The weekly chart for the $BNB price reveals the previous bull and bear markets. If one takes a Fibonacci from the top of the bull cycle in 2021 and pulls it down to the very bottom of the bear market, the 1.168 Fibonacci extension level shows at the nice round number of $1,000. This would probably be the minimum target for this bull market.
At the bottom of the chart, the Relative Strength Index (RSI) has its indicator just popping above the important 80.00 level, which signifies an entry into the overbought territory. As can be seen from previous peaks, this overbought territory can extend a very long way. In fact, for $BNB to avoid bearish divergence, the price will need to get above the huge high of more than 97.00, recorded in 2021.
$BNB breaks out against $BTC
Source: TradingView
It may or may not reach this level, but one thing that is looking very bullish is the overall price action for $BNB. If Bitcoin (BTC) can break out again, and head much higher, and the recent breakout in the BNB/BTC pair can continue to favour $BNB (above chart), this altcoin is likely to remain as one of the top performers of this bull market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
