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BNB Price Bounces to $600 – Triangle Breakout Can Lead to New All-Time High

Last Updated May 10, 2024 7:08 AM
Valdrin Tahiri
Last Updated May 10, 2024 7:08 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The BNB price has traded inside a symmetrical triangle for the past 55 days.
  • BNB is likely in wave four of a five-wave upward movement.
  • Can the BNB price break out and reach a new all-time high after over three years?

The BNB price nearly reached a new all-time high price on March 16 but fell sharply after moving above $600. The price has corrected since then. 

The correction took the shape of a symmetrical triangle and BNB is approaching its endpoint. Will BNB break out and reach a new all-time high, or will it break down instead?

BNB Bounces at Triangle’s Support Trend Line – New Highs Soon?

The BNB price has corrected in what is likely wave four since its yearly high of $645 on March 16. The correction took the shape of a symmetrical triangle, which is the most common pattern for this wave.

The sub-wave count implies that BNB is nearing the end of the correction, after possibly one more drop. A possible target for the top of the increase is at $756, created by giving wave five the same length as wave one. 

This is 30% above the current price and would constitute a new all-time high.

BNB Wave Count
BNB/USDT Daily Chart | Credit: TradingView

The extended wave five lasted for five months. A correction that ends on May 16 would be 0.382 times as long, a common ratio for wave four. 

There is a possible count (yellow) where the correction is already over, and BNB started wave five on May 1. However, due to the length of the previous increase, it is more probable that there is one final sub-wave before the correction ends. 

In any case, both scenarios predict an eventual breakout and increase to a new all-time high.

Binance Launches Megadrop as BNB Price Creates Higher Low — What Lies Ahead?

BNB has been one of the best performers during the ongoing crypto market correction. It is one of the few altcoins that outperformed Bitcoin during the decrease. On top of this, Binance launched its new token launch platform, Megadrop, on April 18.

The BNB price bounced on April 13, creating a long lower wick and validating a horizontal support area. The price is moving toward the resistance trend line of its consolidation pattern. Can BNB break out and reach a new all-time high in May?

What is Binance’s Megadrop?

Binance Megadrop is a new token launch platform  which aims to reinvent the airdrop experience. It does this by giving users access to specific Web3 projects before they are listed on Binance.

While the Binance Megadrop has similarities to a Launchpool, the main difference lies in the ability to complete Web3 quests. A quest can be something as simple as creating a wallet or providing liquidity.

Besides quests, users can lock BNB to earn points and then use them for rewards. The number of points earned depends on the quantity of BNB locked and length of the locking period.

Each project has a specific participation period. After the period is complete, rewards will be distributed based on the number of points earned.

BNB Prediction: Will the Price Reach a New All-Time High?

The weekly time frame wave count shows that BNB is likely in the fourth wave of a five-wave increase (white) that started in July 2022. Even though the price did not reach a new all-time high during the increase, the wave count suggests it will do so soon.

If the count is accurate, BNB is consolidating inside a symmetrical triangle, the most common pattern for a wave four. The sub-wave count is in black.

BNB Price Long-Term Upward Movement
BNB/USDT Weekly Chart | Credit: TradingView

The price action supports the count, since BNB bounced at the $530 area several times, creating long lower wicks. BNB faces only one more resistance before the all-time high.

The short-term count predicts further consolidation before an eventual breakout. Since BNB trades inside a symmetrical triangle, it is likely to reach both its resistance and support trend lines at least once more before breaking out.

BNB Price Short-Term Correction
BNB/USDT Six-Hour Chart | Credit: TradingView

The bullish divergence in the six-hour RSI supports this prediction, indicating that the price has begun the upward movement toward the resistance trend line.

Despite this bullish prediction, closing below the triangle’s support trend line and $530 horizontal support area will invalidate the count. Then, BNB will correct further toward $450.

May Can be a Positive Month

The weekly and short-term time frame price action and wave count both suggest the BNB price has reached its local bottom. While BNB can consolidate inside its triangle for a while, an eventual breakout and all-time high are likely. If this happens, May will be a positive month for the second largest altcoin, bringing considerable gains.

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