Binance Price Breaks Out Above $600 – Bullish Wave Count Predicts New BNB All-Time High

Key Takeaways

• Former Binance  CEO Changpeng Zhao (CZ) was sentenced to a four-month prison sentence.
• On May 21, the BNB price broke out from a symmetrical triangle pattern existing for two months.
• Is this the start of a new upward movement, and if so, will the BNB price reach a new all-time high?

On May 1, founder and former CEO of Binance Changpeng Zhao was sentenced to four months in prison. Despite arguments by the Department of Justice, the judge decided to give Zhao a more lenient sentence, citing no evidence that he was aware of any illegal activities.

Shortly after the announcement, the BNB price fell 5%. Despite the decrease, the price regained its footing afterward and broke out from its consolidation pattern on May 21. After the breakout, BNB has its sights set on a new all-time high price.

BNB Price Breaks Out – Sets Sights on All-Time High

The BNB price started a five-wave upward movement in May 2022. Wave three started in October 2023 and extended, as noted by the sub-wave count (black). After reaching a yearly high of $645 in March, the BNB price started to fall, creating a symmetrical triangle.

The wave count implied the triangle is part of a wave four correction in response to the previous increase. On May 21, BNB broke out from the triangle, confirming the correction is over.

If the count is accurate, the first potential target for the top of wave five is at $778. The target is created by giving wave five the same length as wave one and is above the all-time high of $692. Then, a significant decline could ensue.

Despite the bullish BNB price prediction, closing below the triangle’s resistance trend line will put the bullish count at risk. Then, BNB could decrease toward $500. Currently, there is no evidence to support this happening.

BNB Price Falls After CZ Sentencing

The BNB price has decreased inside a symmetrical triangle since reaching a yearly high of $645 on March 14. The symmetrical triangle is considered a neutral pattern, and both its support and resistance trend line have been validated numerous times (green & red icons). More recently, the triangle’s resistance rejected the price on April 27, starting the ongoing downward movement.

Even though the price is approaching the support trend line at $530, technical indicators give a bearish reading. This is evident in both the RSI falling below 50 and the MACD making a bearish cross (red circle).

BNB Price Prediction: Breakout or Breakdown?

The wave count since June 2022 suggests the BNB price is correcting as part of wave four in a five-wave upward movement (white). Wave three extended and the sub-wave count is in black.

The presence of a symmetrical triangle perfectly aligns with this count, since such a triangle is the most common pattern in a wave four.

Projecting the length of wave one gives a target of $756 for the top of wave five. This is an increase of 38% from the current price and will constitute a new all-time high. A breakout from the triangle will confirm the count.

Despite the bullish BNB wave count, the indicator readings do not align with the count, as evidenced by the falling MACD and RSI. So, a decrease below the previous low of $509 will invalidate the count, pointing to a deeper correction.

In that case, the BNB price can fall to the next support at $476, created by the 0.382 Fibonacci retracement support level.

May Can Bring a New All-Time High

To conclude, it is possible BNB is nearing the end of its sideways movement, contained inside a symmetrical triangle. The prevailing wave count suggests that the triangle encompasses the entirety of wave four. Its breakout could signal the beginning of a new upward movement causing BNB to surge to a new all-time high by May.