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Binance Price Defies Market, Spiking 5%: Can BNB Break Out From Consolidation Pattern?

Last Updated May 9, 2024 12:21 PM
Nikola Lazic
Last Updated May 9, 2024 12:21 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Binance Coin is up by over 5% from yesterday
  • The spike made a slightly higher high indicative of an uptrend
  • BNB in a larger consolidation pattern but might make a breakout attempt

Binance Coin (BNB) has been on the rise since May 8. It came up from a low of $575 to a high of $605, spiking slightly over 5%. The amount of increase isn’t as significant as the fact that, compared to May 6, this is an hourly chart higher high. 

In addition, this comes during general crypto market slump, making BNB one of the rare coins showing positive signs. BNB has been moving sideways since its March 16 peak, most likely consolidating before a further rise. With these things in mind, is this an early sign of a potential breakout from its sideways range? 

Binance (BNB) Price Analysis 

After reaching a peak of $640 on March 16, BNB fell to a low of $505 on March 20. This was its lowest point since then, as it made a series of higher lows. The last one was on May 1, when it came down to $540 from a high of $620 on April 26 which is the horizontal resistance. 

BNBUSD Binance | Credit: Nikola Lazic/Tradingview

Forming an ascending triangle from its March peak could mean that BNB made a consolidative range before continuing its larger uptrend from October last year. This is assumed to be its wave four out of a five-wave move to the upside. 

Looking at the wave structure inside the ascending triangle, we can count a five-wave ABCDE pattern. This usually appears in the fourth wave, according to the Elliott Wave Theory. In addition, BNB ‘s rise since May 1 now shows a five-wave pattern. This could be a sub-wave of a starting uptrend. 

If this is true, then after another interaction with the $620 resistance and a new higher low above $570, we could see an upward movement that could lead to a breakout above the horizontal resistance. 

That would mean BNB is heading to a new all-time high with its next target set at $700. Alternatively, if the price struggles to surpass $620 area and makes a sharp downturn, a breakout below the ascending trendline at $550 will look more likely and BNB could be eyeing values below $500. 

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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