Recently, BNB (BNB) broke out of consolidation territory, indicating a potentially significant uptrend. The fact that the token has risen past the $700 mark suggests that the market is recovering strong and that traders and investors are becoming more optimistic.
BNB is up noticeably 12% over the past 24 hours, continuing the strong trend from the previous week and month. This breakout has attracted attention and some analysts expect significant gains if the bullish trend continues.
BNB’s price was up 3.56% at the time of writing, trading at around $710, with a market capitalization of over $104 billion and a 24-hour trading volume of over $4.2 billion. Over the past day, the market capitalization has increased by 12.73% and trading volume has increased by 79.6%.
Price and indicator formation on the 4 hour and 1 day BNB chart
Currently, BNB is trading above the 100-day Simple Moving Average (SMA) with good bullish momentum on the 4-hour chart. This implies that the price is still positive and there is still an opportunity for price growth.
The 4-hour Moving Average Convergence Divergence (MACD) also indicates that BNB may continue to move bullishly as the MACD histograms trend above the MACD zero line. Moreover, the MACD line and the MACD signal line are currently above the zero line, with a good spread between them, indicating that there is still room for BNB to move higher.
This can be observed in the daily time frame BNB made a successful break above its consolidation zone the day before and subsequently broke its previous all-time high of $692. Currently, BNB’s price is still showing good momentum to move higher.
Furthermore, the 1-day MACD also displays a bullish signal as the MACD histograms are currently trending above the MACD zero line. Moreover, both the MACD line and the MACD signal line are above the zero line with a wide gap between them, indicating that the price of BNB can still go up.
Significance of the outbreak
In conclusion, since prices have broken above the consolidation zone, BNB will definitely create higher highs and lows as the price continues to rise.
However, if it fails to move up, it will begin to fall towards the upper base of the consolidation zone for a new test. If this higher base cannot hold the price, it will continue to fall to test the $509 support level and could even move further to test other support levels.
Featured image of Binance, chart from Tradingview.com