- BNB has given a breakout from a massive bull pennant on the 4-hour
- At present, the coin is hovering at a low of only $6.73% from its ATH
- RSI is about to enter the overbought territory
BNB on the 4-hour chart is confined inside a very bullish structure known as the bull pennant. After consolidating inside the bull pennant for nearly two weeks, the coin gave a breakout towards the upside today. However, the breakout wasn’t accompanied by significant volume.
Currently, the price is testing the support of $590 and could be forming the handle of a potential cup and handle pattern. BNB has broken the major resistance of $576 and intends to hold onto that level could mean that the coin is the run towards breaking a new ATH. For the coin to continue its bull rally, it must sustain above the support level of $450.
BNB likely to face selling pressure at the current price
The price has touched the major resistance of 617 on the 4 hour- chart. A decisive close above the level of $594 (FIB 0.786) would guarantee an upswing towards a new ATH.
However, the resistance level of 617 is accumulated with aggressive sellers waiting to disrupt the momentum. It is also essential that the coin stays above the support level of $541(FIB 0.5) because if broken, it can act as a major resistance level.
Currently, the price of BNB is hanging above all key EMA levels, out of which the 20 EMA is maintaining its consistency in acting as a major support level.
The RSI, on the other hand, is levitating in the range of 66, which is not necessarily overbought. Based on previous RSI readings, it is anticipated that it still has room to grow.
MACD is above the signal line, which is a good bullish sign, but we can sense the possibility of a bearish cross impending.
CONCLUSION: BNB jumped by almost 10% today and gained a market cap of $91 billion. Overall, the coin had surged by 1500% since the start of this year when the price was nearly $37.
This bullish momentum is accompanied by extremely bullish sentiment in the market, with the price action forming higher highs followed by minor pullbacks. Investors have already started eyeing the next big target of $800 if the momentum persists.
SUPPORT : $542, $563
RESISTANCE : $617 , $634
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