Binance Coin (BNB) has experienced a nearly 20% surge this week, approaching its highest level of the year, marking the most significant weekly increase since 2021. This bullish trend has pushed the price above $300 for the first time since May, raising questions about whether BNB will surpass the $350 mark and set a new yearly high. The coin had previously fallen below a long-term descending resistance trend line since its all-time high in November 2021.
After a decline to $184 in June 2022, BNB’s price rebounded but failed to break through the trend line. It was only last week that the price finally broke free from the trend line, which had been in place for 770 days, though it has yet to reach a new yearly high.
Cryptocurrency analyst CryptoFaibik believes this breakout could signal the start of a long-term bullish trend. The Relative Strength Index (RSI), a momentum indicator used to assess overbought or oversold conditions, is showing readings above 50, indicating that bulls may still have the upper hand.
Technical analysis on the daily timeframe supports the continuation of the uptrend, with wave counts, price action, and RSI readings all suggesting positive momentum. Elliott Wave theory, which examines recurring long-term price patterns and investor psychology, is used by technical analysts to predict the direction of the trend.
The most probable wave count suggests that BNB’s price is in the third wave of a five-wave upward movement. The daily RSI is above 50 and rising, recently surpassing 70, signaling strengthening momentum.
If BNB’s price continues to rise and breaks above $345, it could surge by 30% to the next resistance level at $405, potentially setting the highest level of the year. However, failure to break above $345 could jeopardize the bullish figure and lead to a potential drop to the $260 support area, representing a 17% to 25% decline from current prices.