BNB eyes breakout in ascending triangle as price suddenly turns bullish
BNB is the native token of the world’s largest crypto exchange Binance
The token has witnessed a double-digit jump in trading volume as the price rallied.
BNB eyes a breakout from an ascending triangle pattern on the 4-hour chart
BNB/USD is the native token of the world’s largest crypto exchange Binance. Being a utility coin of a crypto exchange of Binance magnitude makes BNB a key token. Investors could be looking at possible bottoms to buy BNB.
Binance is ranked as the fifth cryptocurrency, just behind two stablecoins, Tether and USD Coin. The coin’s 24-hour trading volume is $1.26 billion, an increase of 77.40%. The trading volume is positive for the token despite the overall trend remaining a downtrend. The token has also risen by more than 8% in the same period. There is no significant driver for the gains, albeit the improving crypto sentiment.
BNB maintains an uptrend along an ascending triangle pattern
Source – TradingView
BNB has an established resistance at $240. Since bottoming at $185, the token has been moving in a system of higher highs and higher lows. The price crashed each time it hit the resistance, forming an ascending triangle with the uptrend. At the current $228 price, BNB is retreating after hitting resistance. The RSI reading points to overbought conditions. However, moving averages reinforce a bullish view.
Two scenarios for BNB are likely in the coming days. The first is a breakout above the ascending triangle structure. We view this as the most likely outcome if crypto sentiment improves. The second potential outcome is a break below. The outcome is true if BNB breaks below the ascending trendline and fails resistance breakout. Investors should watch the two possible outcomes.
Summary
BNB is bullish but needs to break above the $240 resistance to go higher. Investors should watch the ascending triangle structure to evaluate the potential direction.
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