BNB is back near $1,300 after a sharp rebound, but these assets may not be ready yet as one analyst believes a rise to $2,400 is possible.
BNB has risen since the outbreak of parallel channels
Like the rest of the cryptocurrency sector, BNB suffered a price crash on Friday, but while the rest of the market has failed to fully recover, the altcoin has already returned to and even surpassed pre-crash levels.
Earlier on Monday, the coin even managed to set a new all-time high (ATH) above $1,370. So it appears that, unlike Bitcoin, the coin’s ATH exploration period has not cooled down yet.
And it is possible that BNB will only rise further in the near future, if the technical analysis pattern (TA) divided into an X by analyst Ali Martinez after there is something to do.
The pattern in question is a parallel channel, which forms when the price of an asset observes consolidation between two parallel trend lines. The upper level of the pattern acts as a resistance barrier, while the lower level provides support. Together they keep the price locked within the channel.
If any of these levels do not hold, it could actively witness a continuation of the trend in that direction. A rise above the resistance line is obviously a bullish signal, while a fall below the support is a bearish signal.
BNB’s three-day price was stuck in a parallel channel for a few years before finding a breakout earlier this year, as shown in the chart shared by Martinez.
Since the breakout, BNB has been exploring new highs, implying that the bullish effect of the resistance break on the Parallel Channel could be in effect. The graph shows that the coin has climbed half as much distance as the width of the channel so far.
Parallel channel breakouts are generally considered to have the same length as the width of the channel. If the cryptocurrency follows this pattern, it may target the level a full height above the channel. “Looks like BNB wants to head towards $2,400!” the analyst notes.
A rise to this target of $2,400 from current levels would imply an upside of almost 89% for the coin. It now remains to be seen whether the asset will follow this path suggested by the Parallel Channel.
In another X afterMartinez has pointed out that Bitcoin’s 1-day price has also been moving within a parallel channel in recent months.
As shown in the chart, Bitcoin is trading near the centerline of the parallel channel after its plunge. It will now be interesting to see whether the decline continues towards the lower $100,000 level or not.
BNB price
At the time of writing, BNB is trading around $1,270, up 4% from the past week.