With all the uncertainty, sell-off, panic, and FUD in the markets be it crypto or financial industry, Binance coin aka BNB seems to be doing good. As mentioned earlier altcoins have suffered the wrath of the recent bitcoin sell-off, however, Binance coin has surged forming a bullish pattern.
With 1 BNB priced at $10.36, the exchange token has seen good days, especially in 2019, where it surged to $40 and above. At the time of writing, however, the token had a 24-hour trading volume of $279 million and was the ninth-largest cryptocurrency based on market cap.
Source: Trading View.
The exchange token's formation of a right-angled ascending triangle indicates a bullish breakout more often than not. However, this doesn't mean that bullish breakout is cemented, it could change, depending of various factors. At the time of writing, the Relative strength index showed the formation of a higher high and higher low, indicating a health rise in buying momentum, indicating a bullish breakout soon.
The price still has 10% room to surge to reach the base of the triangle. Any breach beyond this point would be considered as breakout and would require massive bullish or buying momentum.
The bullish targets include $12.64, the most immediate target at a 10% surge from the base of the triangle and a 20% surge from its current price. The targets that follow $12.64 include $15.589, $17.30 and $20.29.
In an unlikely scenario, there is a chance that the breakout might not be bullish, in which case, the token's immediate support would be $8.32 at a 20% surge from the current price and 26% from the base of the ascending triangle.
Further, since RSI is already close to the overbought zone, there is a chance for a fakeout, where the price drops at the breakout followed by the actual breakout.
You May Also Read.