Binance Coin (BNB), technical formations, increasing network activity, and recent developments involving Binance’s former CEO Changpeng Zhao (CZ) combine to potentially reach an all-time high. Currently, BNB is trading within an ascending triangle formation, which typically signals a bullish breakout. This consolidation suggests a possible increase beyond $692, with some analysts setting high targets up to $775.
BNB Coin Technical Analysis
BNB‘s technical analysis reveals that the token has been trading within an ascending triangle formation since mid-May. Characterized by four higher lows and four roughly equal highs, this formation indicates a bullish trend. The potential breakout target of $775 is obtained by measuring the distance between the first high and low swing within the triangle and projecting it from the breakout point. Such a move would represent a significant milestone for BNB, currently valued at $645 with a market cap of $92.1 billion.
Another factor supporting the bullish outlook is the increasing on-chain activities on the BNB network. Recent data shows a 56% increase in daily transfers of BEP-20 tokens from May 19 to June 3. Additionally, the number of unique addresses on the BNB Smart Chain has consistently increased, reaching an average of 150,000 new addresses daily. This rise in network activity indicates greater adoption and new capital inflow, further strengthening the bullish sentiment around BNB.
CZ’s Imprisonment Begins
CZ’s four-month prison sentence has also played a role in BNB’s recent price movements. Convicted for failing to implement robust anti-money laundering policies during his tenure at Binance, CZ remains the company’s largest shareholder. Despite his legal troubles, news of his imprisonment led to approximately a 6% increase in BNB’s price and a 24% rise in open interest, indicating growing investor interest and optimism.
The recent breakout of the observed symmetrical triangle formation suggests that BNB could rise to $760 if it maintains momentum above key resistance levels. This breakout marks the end of a corrective trend.
A daily candlestick close below $500 will invalidate the bullish thesis and could lead to a significant price drop of up to 9%, down to the 50% Fibonacci retracement support level at $454. Maintaining the price above the breached trend line is crucial for preserving the current bullish outlook. It’s worth noting that BNB‘s all-time high is $691.
