Binance Launches Megadrop as BNB Price Creates Higher Low — What Lies Ahead?
Will BNB Break Out From its Consolidation Pattern? | Credit: Getty Images
Key Takeaways
- The BNB price has only fallen 15% since its yearly high.
- Binance announced the launch of Megadrop on April 18.
- Can the BNB price reach a new all-time high in May?
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.
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.
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.
Binance Coin Spikes 5% But Still In An Ascending Triangle — Will It Break Out?
