BNB also made a breakout from the short-term pattern and attempted to surpass the resistance line in a bid to rise. BNB is now approaching a significant level of resistance.
Since November 2021, the price of BNB has been on a downward trend along a descending resistance line, reaching a low of $183 in June of the following year. However, the price has been increasing since then.
After a failed attempt at a bullish breakout, the token finally broke above the 770-day resistance line in December 2023, reaching a high of $338, just shy of the horizontal resistance area. BNB’s upward movement continued but has yet to make a successful bullish breakout.
Source: TradingView
The RSI is currently above the 50 neutral level and rising, which indicates a bullish trend.
The BNB ecosystem continues to grow
Today, the BNB team released statistics on the project’s ecosystem. The daily transaction rate reached 3.74 million, with a very low average gas fee of only 0.00044 BNB.
BNB Network Statistics. Source: X
In addition, the team announced the BNB Chain Hackathon 2024, with applications for participation being accepted until February 1. The prize fund for the hackathon will exceed $1 million.
Finally, in tomorrow’s public session, the team will discuss opBNB, a layer 2 scaling solution for BNB Smart Chain.
Forecast: Will the growth continue?
The daily timeframe confirms the signals from the weekly chart, showing that the price experienced a bearish breakout from an ascending parallel channel in December 2023. This indicates that the upward movement is impulsive.
Although the token has been trading below a short-term descending resistance line for the past 25 days, it has made several attempts to break through. As the trend lines weaken with each touch, a breakout from this barrier is expected at some point.
Elliott wave analysis supports this forecast. The most likely wave scenario suggests that the price is currently in the fourth wave of a five-wave bullish structure (white). The fourth wave has taken the form of a symmetrical triangle, which is the most probable technical pattern for such a correction.
Furthermore, the daily RSI is above the 50 neutral level and rising, which is a bullish sign. If the token successfully breaks out, it could rise by 14% to the next resistance at $360.
Source: TradingView
On the other hand, if the price declines within the channel, it could result in a 13% drop to the midline at $280.
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