BNB price resilient in the face of challenges in the crypto market
The BNB price is trading just below a key horizontal resistance area, a breakout above which could increase speed considerably.
Although the rest of the crypto market fell sharply last week, The native token of Binance exchange kept its footing and is currently making another attempt to break out. If successful, it will confirm that the long-term trend is still bullish.
Price is approaching critical resistance
The BNB price has been increasing along with a rising support line since June 2022. Recently, the price bounced above the line in March 2023. When the price follows a diagonal line for such a long time, the structure is considered intact as long as the price does not break down from it.
Currently, the price is trading just below the horizontal resistance area of $350. Combined with the line, this creates an ascending triangle, considered a bullish pattern. Therefore, it leads to breakouts most of the time.
If the BNB price breaks out, the next resistance will be at $660. Projecting the height of the triangle to the breakout level is in line with this measure (white).
The weekly relative strength index (RSI) supports the continuation of the increase. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset. Readings above 50 and an upward trend indicate that bulls still have an advantage, while readings below 50 indicate the opposite. Since the RSI is above 50 and rising, it means the trend is bullish.
BNB Price Prediction: Will It Break Out?
The technical analysis and daily timeframe price movement provide a bullish BNB price prediction. Therefore, it suggests that the price will break out of the long-term resistance area of $350. Both RSI and price action support this possibility.
RSI is above 50 and rising. As outlined above, this is a sign of a bullish trend. While BNB fell below the line in April (red circle), it rebounded shortly thereafter and validated it as support in April (green icon). Both the breakout and the divergence followed by a retracement are considered bullish signs. As a result, they indicate that the BNB token price may break out of the $350 area and increase towards $660.
However, if the BNB price closes below the rising support line, it will invalidate this bullish hypothesis. If so, BNB could fall to the next closest resistance at $245.
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Disclaimer
In line with Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, objective reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
