Binance Coin Spikes 5% But Still In An Ascending Triangle — Will It Break Out?
BNB spiked 5% today, making a slightly higher high than before. With the price still in confinement of an ascending triangle can this bullish momentum lead to a breakout?
Key Takeaways
- BNB spiked by 5%, making a higher high.
- The current trend forms an ascending triangle, suggesting a potential breakout.
- Technical indicators show bullish but cautious signals.
The price of Binance Coin reached its yearly high of $645 on March 16, after which it declined 22% to a low of $500 on March 20. A recovery followed but was stopped at a lower high of $623. Another downturn was made, this time at a higher low of $552 on April 2.
Today, BNB spiked by 5%, peaking slightly higher than before at $630. As the price is still upward, and the previous movement formed an ascending triangle structure, can we see a breakout leading to a new yearly high?
Binance Price Analysis
The price of BNB currently interacts with its horizontal resistance zone between $623 and $645, at its median point. The zone’s lower level corresponds to the March 13 high, while its upper level corresponds with its March 16 wick.
As mentioned, this price movement from March 13 formed an ascending triangle, which can be interpreted as a consolidative pattern before further upside continuation. However, the consolidation might have one more descending move before it ends.
The 1-hour chart Relative Strength Index is at the overbought zone, sitting at 72%. Looking at the previous times, it provided an overbought signal, and we can see that this marked a local high, followed by a downturn.
MACD oscillator indicates a bullish outlook, but there are some signs of caution. The moving averages are getting narrower while the oscillations have started to curve down. This indicates that the momentum is losing strength and a potential reversal is on the horizon.
BNB Price Prediction
Zooming out onto the daily chart and examining the wave structure in more detail, we can see that a five-wave impulse from January 26 ended on March 16. This was most likely wave 3 of the higher degree count, leaving the following triangle as its wave 4 correction.
This correction should be subdivided into a three-wave pattern, out of which the recovery from March 20 is its second sub-wave. If this is true, BNB could get rejected at its horizontal resistance zone after forming a double top, making another descending move for its wave C to develop.
Projecting the same length from its assumed wave B ending point at the $645 resistance, we devise a target of $500. This area served as support on March 20 and could be another retest before BNB can start a decisive ascending move. However, should the downward momentum continue to the next area, we could expect to see a bounce from the 1.618 Fibonacci extension level above $400.
First, we need to see what happens at the current resistance interaction, as if BNB makes a breakout, these projections will be invalidated. Alternatively, the ascending triangle could have completed its corrective pattern with the next upward advancement, leading to a new all-time high.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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