- BNB’s falling wedge pattern and MACD crossover signaled a potential 40% price breakout
- On-chain activity, including active addresses and transactions, supported this hypothesis.
Binance Coin (BNB) Bitcoin price has jumped 6.58% in the past 24 hours, reaching $544.48 on the charts at the time of writing. As expected, this has sparked speculation about a possible breakout.
In fact, a post on X (formerly Twitter) by The Moon Carl Analysts have suggested that BNB price could rise by at least 40%. And that’s if it breaks out of a 6-month descending wedge pattern. Hence the question: is this a buying opportunity?
BNB’s chart highlighted a falling wedge pattern, a classic bullish indicator. This is what led analysts to predict an upside potential of 40%.
Source: X
On the chart, the Moving Average Convergence Divergence (MACD) has made a bullish crossover. The MACD line at 6.4 has crossed above the signal line at 6.3, indicating upward momentum.
Source: TradingView
Additionally, BNB’s trading volume surged by 25.29%, reaching $1.8 billion in the last 24 hours. This is further confirmation of the growing market interest. Therefore, traders can keep an eye on the resistance near $580 as a critical point for a breakout.
What do on-chain metrics suggest?
On-chain data provided further insights into BNB’s strength. The number of active addresses increased by 4.03%, reaching 925.07k. Additionally, transactions increased by 15.8%, totaling 4.20 million in just 24 hours.
Source: Nansen
These numbers highlight the increasing user activity and interest in Binance Smart Chain. Whale accumulation may also be a factor in the current rally, with large holders potentially positioning themselves ahead of a major price move.
Could BNB face a pullback?
Despite these positive signals, traders should still remain cautious. The Relative Strength Index (RSI) appears to be approaching overbought territory, sitting at 69.01, a sign that BNB could soon face resistance.
Failure to break above $580 could trigger a pullback, with support levels around $500 and $460 serving as potential downside targets.
Source: TradingView
Additionally, a decline in the number of active addresses or trading volume could signal a decline in interest, which would hurt the bullish outlook.
Should Traders Buy BNB Now?
Although technical patterns and on-chain metrics indicate that BNB could be on the verge of a significant move, caution is still warranted. Overbought conditions and potential resistance at $580 mean that the market could see some volatility in the near term.
However, BNB is still at a critical juncture. This makes it a key token to watch in the days ahead.
