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- Binance Coin (BNB) is forming lower highs and lower lows, a sign of consolidation from bulls, and an indicator of a short-term price rally.
- Though the Relative Strength Index (RSI) and Moving Average technical indicators still point to a bullish outlook, the digital asset is overbought, putting it at high risk of correction.
Based on its technical setup, Binance Coin (BNB) looks poised for a price breakout in the coming days. BNB has been consolidating within a descending parallel channel for the past few days, a trend precipitated by a bullish breakout. The altcoin’s technical setup further points to a bullish outlook.
Like most altcoins, BNB is subject to Bitcoin’s (BTC) performance. Fortunately, BTC’s setup is equally bullish, strengthened by the positive performance of the spot ETFs, the technical setup, and the upcoming halving.
Looking at the Moving Average, this is set up for a bullish move. Furthermore, the Relative Strength Index (RSI) which shows whether an asset is overbought or oversold, looks positive despite the digital asset showing that it is overbought. Rounding up the bullish technical position are the histogram bars, which, like those of the Awesome Oscillator (AO), are in positive territory.
At the time of writing, BNB is trading at $390.54 after a 2% surge in the last 24 hours. This extends the altcoin’s weekly gains by 10%.
The impressive price performance has in part been attributed to hype surrounding an airdrop farming campaign initiated by the web3 gaming project Portal. Data from blockchain intelligence firm Arkham, worth over $400 million worth of BNB, has been sent to Binance ahead of the airdrop. These airdrops have in recent week driven investor interest and attracted new investments into crypto projects.
BNB holders have sent >$400M in BNB to Binance in the past 24 hours to farm @Portalcoin’s launchpool.
7 separate addresses have sent over $10M of BNB, with the largest whale sending in over $40M.https://t.co/EBINQnUPWn pic.twitter.com/dZvvxYXJ0E
— Arkham (@ArkhamIntel) February 22, 2024
With a market cap of a little over $60 billion, the Binance allied coin is the fourth largest digital asset in the market. Its recent performance shows that the coin has shaken the jitters associated with the regulatory troubles facing Binance.
As recently reported, a federal judge has signed off on a guilty plea from cryptocurrency exchange Binance along with $4.3 billion in fines and penalties to settle charges against the company and its CEO, Changpeng Zhao. Both Binance, which is under new leadership, and BNB Coin are now looking to keep building and dominating their respective spaces.
Bulls are eyeing $400 in the short term, which could act as a key support and psychological position for bulls. However, if bulls lose control, bears will drag prices to retest the $360 low.
In the long term, bulls will look to retest the altcoin all-time high of $686.31 reached in May 2021.
