Home Editor's Pick Is Binance Coin (BNB) Price About to Surge? Eye’s Target of $775+

Is Binance Coin (BNB) Price About to Surge? Eye’s Target of $775+

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TLDR

Binance Coin (BNB) price is consolidating within an ascending triangle pattern, hinting at a potential breakout to a new all-time high above $692.
On-chain data suggests growing demand and usage of the BNB network, with increases in daily token transfers and unique addresses.
Binance’s ex-CEO Changpeng Zhao (CZ) began his four-month jail term on Monday for failing to establish robust anti-money laundering policies while serving as head of Binance.
BNB price rallied nearly 6% following the commencement of CZ’s jail term, with a spike in open interest indicating increased investor attention.
The recent breakout from a symmetrical triangle pattern suggests a potential rally to $760, with the coin price currently trading at $624 and a market cap of $92.1 billion.

Binance Coin (BNB), the native cryptocurrency of the Binance ecosystem, is on the verge of a significant price breakout as the token consolidates within an ascending triangle pattern.

The recent surge in BNB’s price, coupled with growing on-chain activity and the commencement of ex-CEO Changpeng Zhao’s (CZ) jail term, has created a bullish sentiment among investors.

Technical analysis of BNB’s price action reveals that the token has been trading within an ascending triangle formation since May 16.

Binance Coin price at Coingecko

This pattern, characterized by four higher lows and four roughly equal highs, has a bullish bias and suggests a potential breakout towards a new all-time high above $692.

The target for this breakout is obtained by measuring the distance between the first swing high and swing low to the breakout point, which indicates a possible price target of $775.

The bullish outlook for BNB is further supported by on-chain data, which shows an increase in network activity and demand.

The number of BEP-20 tokens transferred daily has increased by 56% from May 19 to June 3, indicating growing traction and usage of the BNB network. The BNB Smart Chain unique addresses metric has consistently increased by an average of 150,000 daily, signaling greater usage and an influx of new capital into the network.

The recent commencement of ex-CEO Changpeng Zhao’s four-month jail term has also contributed to the bullish sentiment surrounding BNB. CZ reported to Lompoc II, a federal prison in California, on Monday after being sentenced for failing to establish robust anti-money laundering policies while serving as head of Binance.

Despite stepping down from his role as CEO, CZ remains the largest shareholder in the company, with a net worth of $36.5 billion.

Following the news of CZ’s jail term, BNB’s price rallied nearly 6%, accompanied by a 24% spike in open interest. This increase in open interest, which represents the total number of outstanding derivative contracts yet to be settled, indicates heightened investor attention and potential for further price growth.

BNB’s recent breakout from a symmetrical triangle pattern also suggests a potential rally to $760. The coin price, currently trading at $624 with a market cap of $92.1 billion, could reach new highs if it sustains above key resistance levels.

The breakout from the triangle pattern signals the end of the ongoing correction trend, and the potential recovery in BNB could witness dynamic support from the midline of Bollinger Band indicators.

Investors should remain cautious, as a daily candlestick close below $500 would invalidate the bullish thesis and potentially lead to a 9% crash to the 50% Fibonacci retracement support level at $454.

If the price fails to sustain above the breached trendline, the bullish thesis will be invalidated, and BNB could prolong its consolidation for several more weeks or months.

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