BNB Trades Within Ascending Channel, but Faces Tough Path Back to $790
Key Takeaways
- BNB’s price has been trading within a rising channel since July 2024.
- Despite hitting a new high recently, it has failed to break $700 again.
- Key indicators suggest that BNB could continue short-term consolidation.
Out of the top 10 altcoins, BNB was the first to surpass its peak from the 2021 bull market. This happened in June 2024 when it breached $700 amid several events that led to uncertainty.
In December, the cryptocurrency rallied again and hit a new high. However, it has struggled to break through the $800 psychological resistance, a level that, if surpassed, would have marked a new chapter for the coin in this cycle.
With that yet to happen, here is how BNB’s price could fare in the days to come.
BNB Keeps Consolidating
A look at the daily chart shows that BNB’s price has been trading within an ascending channel since July 1, 2024. An ascending channel is a pattern formed by two upward-sloping parallel lines, indicating higher highs (HH) and higher lows (HL).
This pattern typically indicates a bullish trend. However, to validate that trend, the price needs to break out upward. If the price breaks below the HL, it invalidates the uptrend.
In BNB’s case, the HH or the HL have either yet to be broken, indicating a prolonged consolidation around the coin. As long as it fails to break the higher highs or higher lows, BNB’s price might keep swinging between $649 and $730.
Bullish Trend Fades as Coin Eyes Lower Targets
Further evaluation of the daily chart shows that two key indicators are struggling to keep BNB on the upside. First is the Moving Average Convergence Divergence (MACD).
The MACD is a momentum-based indicator that identifies changes in the strength and direction of a trend. When the indicator’s rating is positive, it implies that the price can increase amid bullish momentum.
On the other hand, a negative reading indicates otherwise. As of this writing, the MACD has slightly dropped to negative territory, indicating that BNB’s price is unlikely to jump toward $790.
Instead, the coin will have to bank on the $649 support to keep it consolidating as mentioned above.
The signals shown by the MACD are also similar to the ones shown by the Awesome Oscillator (AO). While the AO has not dropped to the negative region, the red histogram bar displayed suggests that bullish momentum is fading.
Using the Fibonacci retracement levels, the daily chart shows that BNB’s price keeps wobbling around the 0.618 golden ratio.
However, the decline in trading volume suggests that the cryptocurrency might struggle to break past the overhead resistance at $740. If this remains the case, the BNB’s price might decrease to $640 near the 0.382 Fibonacci retracement level.
On the contrary, if the coin can break above $740, the trend might change. In that case, BNB could rally toward $800.
