Binance Coin (BNB) in Consolidation Mode: Is a Breakout Imminent?
Binance Coin (BNB) might be set for a surprising surge if it breaks out from its ongoing consolidation phase.
Top crypto analyst Crypto Rand marked out this consolidation phase in a post on X. According to Crypto Rand, BNB has been consolidating nicely following the breakout of the primary downtrend resistance.
BNB Rebuilding Tempo
Binance Coin has recorded steep slumps for the better part of this year. Despite its 0.38% growth in the past 24 hours, BNB is down 14.20% Year-to-Date (YTD) and more than 35% over the past six months.
Crypto Rand maintains an optimistic outlook for BNB despite this bearish historical performance. The chart accompanying his analysis shows three distinct downtrend resistance phases and the ensuing consolidation movements.
From August 2022 to June this year, BNB hovered between a low price of $260 and a peak of $340. Marked by the upper blueish bands, BNB oscillated differently and even breached the $260 support zone around January.
As uncertainties surrounding Binance’s legal status in the United States emerged, BNB nosedived below $260 in June, turning that price point into new resistance.
This downward move ushered in its second consolidation phase from June to August. Currently, BNB has once again flipped the support at $230, dropping below $210 earlier this month.
The immediate mission is to regain the $230 resistance. Should the optimism from Crypto Rand materialize into actual growth, it can usher in a rally that might return the coin to the $260 range soon.
BNB trades at $212.14, with its market capitalization pegged at $32.18 billion. Crypto Rand confirmed that BNB recently witnessed an impressive increase in volume not recorded months ago.
Potential Collective Revival
One major challenge of Binance Coin is the impact of the crackdown from the U.S. SEC. Damning as the case appears, BNB is not alone in the fight as the trading of ADA, SOL, FIL and others on secondary exchanges constitutes investment contracts per the SEC.
As Binance and Coinbase fight the SEC in this regard, a good precedent is set in XRP’s ruling. This presents a long-term bullish outlook if all assumptions turn out as experts predict.