A $300-bound relief rally in Binance Coin price takes a breather, but for how long?


  • Binance Coin price exhausts a 5.08% rising triangle pattern’s breakout at $290.
  • BNB price gains momentum as volatility heightens with investors moving previously idle tokens.
  • The seller congestion at $290, together with the overbought conditions BNB is facing, could curtail the move to $300.

Binance Coin price appears to be moving in tandem with the rest of the cryptocurrency market. Most of its peers, including Ethereum (ETH), Cardano (ADA) and Solana (SOL), flipped green with double-digit gains. The native exchange token now trades at $289 while bulls struggle with dispersing significant seller congestion at $290.

Assessing the possibility of Binance Coin price tagging $300

The BNB price breakout to $290 comes after a rising triangle validated a breakout on the four-hour chart. This bullish pattern is characterized by the price moving within a tight range, depicting a heated tussle between bulls and bears.

A properly formed triangle would require the price to touch its support and resistance at least five times. A bullish outcome is expected when buying pressure outweighs selling pressure at the resistance level (x-axis).

In the case of BNB, trading above the horizontal resistance at $276, validated a 5.08% move to $290 – calculated by extrapolating the distance between the widest points of the triangle up from the breakout point.

BNB/USD four-hour chart

BNB/USD four-hour chart

Despite the sluggishness being experienced at $290, Binance Coin price is largely in the bulls’ hands. The MACD (Moving Average Convergence Divergence) indicator adds credence to its bullish outlook as it snakes above the mean line (0.00). Stubbornly bullish traders must wait for an established break above $290 before going all-in with long positions bound for $300.

Binance Coin price saw a 105% positive change in its trading volume as retail investors circled back into the market. Meanwhile, on-chain data by Santiment shows a massive spike in the number of previously dormant BNB tokens.

The Age Consumed metric tracks the movement of previously idle tokens. It does so by multiplying the amount of BNB tokens changing addresses daily multiplied by the days since they last moved. Spikes in this on-chain model show a large sum of previously dormant tokens is on the move, which eventually translates to heightened volatility.

Binance Coin Age Consumed

Binance Coin Age Consumed

Although the Age Consumed metric can pinpoint incoming volatility, it does not determine the direction in which BNB price will move. Therefore, traders and investors must rely on other indicators to make the best decisions.

If gains above $290 turn out to be a daunting task for bulls, a retracement will not appear farfetched. Hence, traders should lock in profits as the price recovers because new entry positions tend to open up as Binance Coin price hunts for support.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP