BNB Price Within Reach of February Highs as V-Shaped Recovery Gains Momentum
Key Takeaways
- BNB broke above the $603 support, confirming bullish momentum amid a rising RSI rating.
- Social dominance has increased, indicating that BNB could attract higher demand if sustained.
- Indicators, including the Supertrend and MACD, reveal that the BNB coin could end March higher.
- Interested in buying or selling BINANCE BNB coin? Read our review of the best exchanges to buy and sell BINANCE BNB.
After experiencing a 25% decline between mid-February and March, BNB’s price seemed to have left the corrective phase.
Today, the cryptocurrency trades around $645, the highest it has reached since Feb 24. The rebound indicates sustained buying pressure, with bulls pushing to reclaim higher levels.
Amid this recent setup, indicators reveal that BNB could surge past key resistance levels and possibly end the month at a higher value. Here is why.
BNB Buyers Drive Sharp Reversal
BNB’s price action followed the broader market recovery, which has seen several altcoins jump from their monthly lows. But outside of that, the technical perspective reveals more about BNB’s performance and short-term potential.
On the daily chart, BNB is trending toward a V-shaped recovery. A V-shaped recovery refers to a price rebound after a steep decline, forming a distinct “V” pattern on the chart.
This pattern indicates a sharp reversal, typically driven by renewed confidence and bullish sentiment.
Unlike gradual recoveries, which take time to build momentum, a V-shaped recovery suggests that buyers have quickly regained control, erasing losses quickly.
In BNB’s case, it has broken above the $603 support to validate the uptrend. In addition, the reading for the Relative Strength Index (RSI) crossed above the neutral line.
The rise in the RSI reading indicates bullish momentum. Therefore, if the indicator’s reading continues to trend higher, then BNB’s price could inch toward $700, which is near the peak it reached last month.
Besides that, on-chain data shows an increase in the cryptocurrency’s social dominance. Social dominance measures the level of discussions related to a cryptocurrency.
When it decreases, it indicates a decline in conversations about the assets, which is bearish. However, according to Santiment, BNB’s social dominance has risen to 1.43%.
If sustained, this could help attract demand and drive the price higher.
BNB Price to Extend Bullish Streak
Looking at the technical outlook again, the 4-hour chart seems to agree with a sustained uptrend. As seen below, BNB’s price has been hitting higher lows and higher highs since the reversal began.
As a result, the cryptocurrency continues to trade within an ascending channel. Furthermore, the green line of the Supertrend indicator is below the price, indicating strong support and a potential for higher trading.
In addition to that, the Moving Average Convergence Divergence (MACD) has flipped to the positive region. This change in trend reinforces the bullish momentum indicated by the RSI above.
BNB’s price might run to $680 if this trend continues at the 0.236 Fibonacci level. If validated, a rally to $700 could be next, with rising buying pressure possibly pushing it to $732.
In a bearish case, this might not happen. Thus, if BNB drops below the lower trendline of the ascending channel, the price might decline to $595 at the 0.618 Fib level.
Once that happens, an extended decline toward $557 could be next, invalidating the bullish thesis.
BNB Price Struggles at Critical Level, Leaving Door Open to $500 Pullback
