Binance Coin (BNB) Price Soars Above $300, Is Next Stop $400?
Binance Coin (BNB) has been making headlines lately as its price continues to soar, reaching above $300, an increase of over 1600% this year alone. The cryptocurrency, which is the native coin of the popular exchange Binance, has seen a surge in demand and adoption, making it one of the most valuable coins in the market. But what’s driving this growth, and can it continue?
Binance CEO Changpeng Zhao has been a vocal supporter of cryptocurrencies, and he has been driving the growth of the BNB token. He recently stated that the exchange has no exposure to the Silicon Valley Bank. But, shortly afterward, he stated that the cryptocurrency exchange would convert what remains of its $1 billion industry recovery fund to assets such as Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). This move is a bullish sign for Binance Coin as it shows that Binance has faith in its native cryptocurrency.
However, not all Binance news was positive. Payments provider Skrill ended its relationship with Binance, forcing the latter to suspend its GBP transactions starting from May 22. This move could have a negative impact on Binance Coin’s price in the short term, but its long-term outlook remains bullish.
Binance Coin (BNB) Price Trades in Long-Term Range
The weekly time frame technical analysis shows a long-term range between $240 and $360. Excluding a deviation in May 2022, the BNB token price has traded inside this area since April 2022. The price has increased since the deviation but has not managed to break out from the top of the range. Rather, it validated the range bottom in December, created a higher low, and has increased since. Last week, the price created another bullish candlestick.
Despite the failure to break out, technical indicators are bullish. This is especially visible in the weekly RSI. The indicator broke out from a long-term descending resistance line and is now above 50. So, a breakout is the most likely scenario.
If the Binance Coin price breaks out above $360, it could increase to the next resistance at $445, created by the 0.5 Fib retracement resistance level. However, a drop to the $240 support area could follow if the rally loses momentum.
Binance Coin (BNB) Price Short-Term Breakout Could Precede Long-Term One
The daily chart provides a more bullish outlook. There are several reasons for this. Firstly, the price broke out from a descending resistance line that had been in place since the beginning of February. This is a sign that an upward movement has begun.
Next, the price completed an A-B-C corrective structure, which was confirmed by the breakout from the resistance line.
Then, the daily RSI moved above 50. Finally, the BNB price reclaimed the minor $285 horizontal area, which is now expected to provide support. These are bullish signs suggesting that the increase is expected to continue.
Therefore, the BNB price is likely to reach the top of the range at $360. However, the signs are insufficient to determine if it will break out.
To conclude, the most likely BNB price forecast is an increase toward the range top at $360. Whether it breaks out or gets rejected could determine the future trend. On the other hand, if the BNB price falls below $290, it would invalidate the bullish structure and could catalyze a decrease toward $200.
The Bottom Line
Binance Coin’s growth is driven by various factors such as the exchange’s adoption, increasing demand, and the market’s overall bullish sentiment. While there may be short-term fluctuations, the long-term outlook for Binance Coin remains bullish. However, investors should always do their own research before investing in any cryptocurrency.
