BNB Price Bounces Back, Targeting $700 Amid Rising Market Volatility

Key Takeaways

• BNB’s price has reached triple bottom after failing to break down $600 recently.
• As the MFI reading shows, buying pressure has increased while volatility rises.
• The RSI has broken above the downtrend, validating an extended BNB upswing.

Trend Reversal Beats the Trap

Based on the daily BNB/USD chart, the cryptocurrency encountered rejection at $697 on Feb. 13. This pushback dragged BNB’s price down to $648 and hinted at a potential decline below $600.

As the price fell during that time, the Money Flow Index (MFI) failed to decline, implying that BNB formed a bearish divergence. A bearish divergence occurs when an asset’s price hits higher highs, but the technical indicator trends lower.

It can also happen if the asset’s price trends lower but the indicator’s reading hits higher highs. With the altitude the MFI reached, BNB could quench a fall to bearish cues.

In addition, the chart’s analysis shows that BNB seems to have formed a triple bottom. As shown below, the cryptocurrency held support at $648.

When this support was available, the price rallied above $700 on previous occasions. For instance, a similar setup sent BNB’s price to $750 in December. One month later, it jumped to $730 after an initial decline.

Therefore, if the past performance influences the current trend, BNB could be in line for a sustained upswing above $700. Amid this price action, on-chain data from Santiment shows the one-day volatility has risen.

Rising volatility suggests BNB’s price could swing within a broader range. Thus, if bulls maintain buying pressure, the rally could strengthen as volatility continues to climb.

BNB Price Hike to Gain Strength

The 4-hour analysis also reinforces the bullish outlook around BNB. On the timeframe, the Relative Strength Index (RSI) has risen above the 50.00 midpoint

The rise above this region also shows that the RSI has broken the downward momentum experienced between Feb. 12 and 20. Like the daily chart, this setup invalidates the bearish divergence BNB faced earlier.

Considering the current outlook, the cryptocurrency is likely to rise above the resistance at $680, which is aligned with the 0.236 Fibonacci level. If validated, then BNB’s short-term target could be around $733.

Should buying pressure increase, the cryptocurrency’s value might reach $800, marking a new all-time high.

Alternatively, if the altcoin faces rejection at $680, this prediction might not come to pass.

Instead, BNB could decline to below $600 and hit $594 at the 0.618 Fib level.