Binance Coin (BNB) is trading slightly down on Tuesday after a remarkable 12.5% rally last week, but the technical outlook remains bullish, suggesting a continuation of the uptrend. Last week, BNB broke above an ascending triangle pattern on the weekly chart, a development that many technical analysts view as a sign of a potential bullish breakout. With on-chain data supporting the rally, BNB is now set to target a new all-time high of $825.
The technical breakout above the ascending triangle formation on the weekly chart is a key development for Binance Coin. This pattern, which formed between mid-July and now, was characterized by higher lows and a series of equal highs. The breakout above this level last week triggered a 12.5% price surge, pushing BNB higher to its current level of around $650.
Typically, an ascending triangle breakout is seen as a bullish signal, as it suggests that the price is likely to continue moving upward. To estimate the potential target for this rally, the distance between the first daily high and low before the breakout is measured and added to the breakout point. In BNB’s case, this places the target at $825.65, which would mark a new all-time high for the token.
The Relative Strength Index (RSI) on the weekly chart is currently reading at 60, which is above the neutral 50 level but still far from overbought territory. This indicates that there is room for further upside and that the bullish momentum could continue building as long as the price stays above key support levels.
On-chain metrics further support the case for a bullish continuation in Binance Coin. Open interest (OI) on BNB futures has surged significantly over the past few days. According to Coinglass, the OI at exchanges rose from $575.96 million on Saturday to $797.46 million on Tuesday, the highest level seen since mid-June. This rise in open interest suggests that new money is entering the market, signaling that traders are increasingly betting on further price appreciation.
Additionally, BNB’s daily trading volume has also spiked in recent days, reaching its highest levels since mid-August. Token Terminal data shows that BNB Chain’s daily trading volume surged from $807.47 million on November 4 to $2.29 billion on Sunday. This sharp rise in trading activity indicates growing liquidity and increasing interest in the coin, which could help fuel further price movement.
The next key levels to watch for BNB are around $606.70, which represents the breakout level from the ascending triangle. If BNB finds support at this level, it could rally first to retest its previous all-time high (ATH) of $721.80 before extending further to its new technical target of $825.65. Should BNB maintain its bullish momentum, breaking through these levels could set the stage for even higher price action in the weeks ahead.
However, traders should remain mindful of the volatility that often accompanies such technical breakouts. If BNB fails to hold support around the $606.70 level, there could be a retracement that tests lower levels before any further upward movement.
Binance Coin’s recent breakout from the ascending triangle pattern and the accompanying bullish momentum indicators suggest that BNB is poised for further gains. With rising open interest, increased liquidity, and strong trading volume, BNB’s path to a new all-time high of $825 seems increasingly likely. While there are always risks in the highly volatile crypto market, the technical and on-chain data points to continued bullish action for Binance Coin in the near term. Traders and investors will be watching closely to see if BNB can sustain this momentum and reach new highs in the coming weeks.
November 2024, Cryptoniteuae