Amidst a challenging market where Bitcoin struggles to maintain the $40,400 support level due to significant sell-offs, Binance Coin (BNB) shows signs of recovery. After a long-term downtrend, BNB reclaimed its resistance level in December 2023, signaling a potential end to the bearish trend. This resurgence was bolstered by excitement around ETFs and positive outcomes from Binance legal proceedings.
BNB’s price marked a peak at $338 after overcoming the horizontal resistance area, with its Relative Strength Index (RSI) staying above 50. This suggests that if Bitcoin’s losses do not intensify, BNB’s price could continue to rise alongside its RSI.
Binance Coin’s performance is relatively stable, with only a modest loss compared to other altcoins, trading at $311 at the time of the report. BNB’s low transaction fees contribute to its strong position, with a daily average of 3.74 million transactions costing just 0.00044 BNB each.
Technical analysis indicates a bullish trend for BNB, as it has broken out from an ascending parallel channel on the daily chart in December 2023. Despite short-term resistance, BNB has made multiple attempts to break through, suggesting that continued efforts could lead to an upward breakout.
According to the Elliot Wave Theory, BNB is in the fourth wave of a five-wave upward movement. The fourth wave has formed a symmetrical triangle, and a breakout is imminent. Should BNB break upwards, it could test the $360 resistance level. Conversely, a drop below $300 could risk a fall to $280.