BNB Holds Steady Above $700 Amid Mixed Market Signals

Key Takeaways

• The BNB price is validating its 2021 all-time high level as support.
• It is unclear if the upward movement since August 2024 is impulsive.
• Will BNB reach new highs in 2025, or has the bullish cycle ended?

BNB reached a new all-time high price in June 2024, culminating in a 150% increase since the start of the year. After a market-wide correction through August, BNB regained its footing and reached a new all-time high of $793 in December.

BNB saw a brief pullback entering 2025 but has created a higher low, sparking optimism for a new all-time high.

With BNB approaching its highs, the question is whether the price can break its highs and what targets lie ahead if it does.

BNB Retests All-Time High

BNB reached a new all-time high in the first week of December 2024, breaking out above the $670 resistance area, which caused three rejections (black icons) since 2021. The breakout led to a new BNB all-time high price of $794.3.

Even though BNB has fallen since the high, it retested the $670 area twice. This is a common movement after a breakout, suggesting that the upward movement is legitimate and will lead to new highs afterward.

However, while the BNB price action is bullish, technical indicators show weakness.

This is clear by the weekly bearish divergence (green) in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD).

Divergences in such high time frames are rare and often mark the end of the bullish cycle. The MACD also makes a bearish cross (black circle), which previously led to a significant downward movement.

The weekly time frame gives inconclusive readings. While the price action is bullish, technical indicators suggest the rally will end soon.

The daily time frame gives a similar mixed outlook. Since the entire movement on Aug. 5, 2024, the bottom has been contained inside an ascending parallel channel. These channels usually contain corrective movements, meaning a breakdown from them is likely.

Additionally, BNB trades in the channel’s lower portion and below the $700 resistance area.

However, indicators are not bearish. On the contrary, the MACD has generated a hidden bullish divergence (green) while the RSI is at 50.

So, whether the BNB price breaks out above $700 or gets rejected and breaks down from the triangle will determine the future trend’s direction.

Is the BNB Rally Over?

Similar to the weekly and daily price action, there is no conclusive wave count to predict the future BNB movement. The most likely count suggests that BNB is in the fifth and final wave of an upward movement that started in May 2022 (white).

The sub-wave count is in black, showing an ending diagonal to complete the final portion of the upward movement.

While the count is valid, ending diagonals are relatively rare, creating some doubt as to whether this is correct. The lack of viable alternatives makes this possibility the most likely.

The first target for the top of the BNB price increase is at $922, created by the 1.61 external Fibonacci retracement of wave four. If the BNB price continues to trade inside the same channel, it will reach the target in April 2025.

Afterward, the price could begin a lengthy correction that retraces a portion of the entire upward movement since the $190 lows.

BNB Trend Leans Bullish

The BNB price has bounced at the previous all-time high resistance but does not show enough signs to confirm its bullish trend.

If the price closes above $700, it will confirm the final portion of its long-term increase, taking BNB to $922.

On the other hand, breaking down from the channel can lead to a deeper retracement.