This week, the price of BNB has experienced a significant increase of nearly 20%, bringing it close to its highest point of the year. This surge marks the largest intraweek gain seen since 2021.
BNB has successfully broken through a long-standing resistance level
The weekly chart clearly illustrates that BNB’s price has been following a descending resistance line since reaching an all-time high in November 2021. As a result, the coin’s value dropped to a low of $184 in June 2022. Despite an unsuccessful attempt at a bullish breakout in April 2023 (as indicated by the red icon), BNB formed a higher low in October and successfully broke through the trend line last week, leading to significant price growth this week.
At the time of the breakout, the resistance line had been in place for 770 days. However, BNB has yet to reach a new yearly high.
Renowned cryptocurrency trader CryptoFaibik believes that this breakout marks the beginning of a new long-term uptrend for BNB.
Source: TradingView
The weekly momentum indicator RSI is on the rise and currently above the neutral point of 50 (as indicated by the green icon). These factors are all considered positive signs of a bullish trend.
BNB Forecast: Can it Reach the $400 Level?
According to Elliott wave analysis, the most likely scenario suggests that BNB is currently in the third wave of a five-wave upward movement (highlighted in black). Sub-wave analysis, depicted in white on the graph, supports this notion by indicating an extended third wave.
The daily RSI also provides bullish signals as it is rising and currently above the neutral point of 50. It recently surpassed 70 (green icon), indicating increased momentum.
In addition, the price action shows progress above a key horizontal area.
If BNB continues its upward trajectory and manages to break through the $345 level, it could potentially strengthen by 30% and rise to the next resistance level at $405, establishing a new yearly high. This would result in the third wave being approximately 2.61 times the length of the first wave.
Source: TradingView
On the other hand, failure to surpass the $345 level would jeopardize the bullish scenario and could potentially lead to a price retracement towards the $260 support area. This would represent a 17% decline from the current price and a 25% drop from the $344 area.
Check out our YouTube channel