BNB price just crossed a key level after drawing “golden cross” pattern on its charts, what to expect next?
As Bitcoin volatility decreases, BNB price is trading at $380. The Binance Smart Chain token follows a strongly bullish path from Tuesday, February 20, at $346 to current levels.
This cryptocurrency is actually trading in a much longer positive trend on an annual basis and recovers from the decline caused by SEC pressure in mid-2023. That is why this rise represents a recovery from $206, the lowest minimum in a year.
Many factors aligned in these months and weeks so that the price of BNB today presents significant increases, but today specifically the main motivation is the announcement of the burning of BUSD and TUSD tokens, an event announced by Binance yesterday via X:
“Today, Binance will burn a significant number of $BUSD and $TUSD B-tokens. The equivalent amount of tokens used as collateral on their native networks will then be released.”
Weeks before the series of SEC disputes against Binance and qualifying BNB as a security, BNB was trading as high as $343. Subsequently, pressure from the organization sent it to the aforementioned $206.
BNB not only managed to recover to the highs before the crash, but even surpassed those highs. This panorama is a sign that BNB regained the confidence of investors and went further, awakening their enthusiasm again.
BNB Rising Price Chart Analysis
Charts of the recent BNB price surge highlight the formation of the famous “golden cross.” That is, when the 50 EMA crossed the 200 EMA. Generally, this cross is interpreted as a strong bullish signal and this was reflected in the BNB price.
After this pattern occurred, the price of BNB grew steadily and consolidated at increasingly higher levels. As soon as the price broke $338, the price increased its upward potential to today’s levels.
On a yearly basis, BNB charts show the inverted bullish “shoulder, head and shoulder” pattern. As soon as this pattern was completed, the price broke above the first “shoulder”, showing that it was indeed undervalued at those levels where the inverted head was formed.
Given this optimism, it is now essential to find out where a correction can be seen. In this context, the psychological level of $400 seems too strong to break and, therefore, the correction could occur before reaching it.
In case the price retraces, the 20 EMA and around $336 can be set as support. It is also possible to use the 50 SMA as fairly strong support around $315. If the bears manage to push the price to lower levels, then this would mean a trend reversal.
So far, the bulls remain in control: the moving averages and the RSI in the overbought zone confirm the strong control of the buyers at this time.
Will BNB Reach $400 Before March?
The most optimistic analysts predict that the BNB price will reach $400 before March. However, this level is not easy to achieve after the long bullish rally experienced by this token. The outlook would change if BTC gains new upward momentum. As Bitcoin Halving approaches, its price stabilizes.
It therefore seems appropriate to question whether the gains around the enthusiasm generated by the halving have already been achieved.
This consideration is short-term and in a long-term assessment the expansion of the Binance Smart Chain and its achievements in its adoption should also be considered. For example, the fact that it recently surpassed one million active users. A great milestone that reflects the potential that this network has.
By Audy Castaneda
