BNB‘s price has entered a consolidation phase following an attempt to hit an all-time high. This phase is marked by the formation of an ascending triangle flag pattern above the 100-day Simple Moving Average (SMA) on the 1-day timeframe, often a precursor to a bullish breakout.
What Signals a Potential Breakout?
Currently, BNB’s price fluctuates between a resistance level of $647 and a support level of $498, suggesting momentum is building for a potential bullish breakout. The total market cap stands at $89,412,113,586, with a 1.70% increase in the last 24 hours despite a 37% drop in trading volume, totaling $1,535,069,940. BNB is trading around $604, slightly above the 100-day SMA, reflecting a modest 0.65% rise in the past day.
From a technical analysis perspective, BNB’s current price above the 100-day moving average is a positive indicator. This trend suggests a potential upward move beyond the upper boundary of the ascending triangle, bolstered by the encouraging signs in the 1-day timeframe price chart.
How Does RSI Impact BNB’s Trajectory?
The Relative Strength Index (RSI) is another crucial indicator, currently hovering above the zero line. This position typically indicates bullish momentum, reinforcing the likelihood of BNB breaking through the ascending triangle’s upper boundary.
Key Inferences for Potential Investors
- Monitor BNB’s price movement around the $647 resistance and $498 support levels for breakout signals.
- A sustained position above the 100-day SMA indicates potential for a bullish trend.
- Observe the RSI signal line for continued bullish momentum.
- Be prepared for possible downward moves if BNB fails to break the ascending triangle.
If BNB breaks above the ascending triangle, it could surpass the previous high of $647 and possibly set a new all-time high. However, failure to break this formation may result in a downward move, potentially testing the $498 support level or even deeper corrections to $384.