Since the weekly RSI has broken out of the descending resistance line, BNB might rise above the USD 335 level. A recent chart indicates that the price might have started a long-term 5th wave that could lead to a new all-time high.
The weekly and daily charts show that Binance Coin (BNB) is bullish and may have reached a long-term low.
BNB has been primarily bearish since its all-time high of USD 691.80 in May 2021. After reaching a lower high in November 2021, it dropped toward its low of USD 183 in June.
The value of BNB has increased since then, which validated the support around USD 225.
A local high of USD 336.80 initially caused a rejection of the support at USD 335, which may have become a resistance.
The weekly RSI has broken out of the descending resistance line since the all-time high, which usually occurs before price spikes.
Therefore, the price of BNB might break above the USD 335 level and accelerate after that.
A Break in the Bullish Trend is Underway
The daily graph also shows a bullish outlook, in line with the weekly chart. In late July, the price of BNB left a descending resistance line active for 264 days. However, the price broke the RSI upward trend line accompanying the breakout.
That might lead the price to drop toward the ascending support line that has been in place since June 18th. It is currently at USD 275 but should continue after the upward move.
The BNB Wave Count Analysis
XForce Global, a cryptocurrency trader, recently shared a chart of BNB on his Twitter account. The graph indicates that the price might have started a long-term 5th wave that could allow it to reach a new all-time high.
According to the most likely long-term count, BNB started the fifth and final wave of the momentum beginning in December 2018.
Reasons Why That Is the Most Likely Wave Count
The bottom of the 4th wave occurred in a parallel channel connecting the highs of waves one and three. Besides, it appears projected onto the bottom of wave two.
Furthermore, the decline from the all-time high is an ABC structure, as waves A and C have an exact 1:1 ratio.
The price of BNB might reach a new all-time high if that is the correct count. A tentative target for the top of this move lies in the middle of the channel hovering around USD 2,000. A decline below the fourth wave low of USD 183 would invalidate that wave count.
BNB is trading at around USD 316 and has accumulated a 2.6% loss over the last week. While its daily trading volume is above USD 1.07 billion, its market capitalization is about USD 51.81 billion, according to CoinGecko.
Investors should research BNB or any other crypto asset before buying it to know its all-time high, behavior, and possible future price. That will help them find the most convenient investment opportunity to avoid the risk of losing money.
By Alexander Salazar
