Binance Coin (BNB) recently surpassed its all-time high and reached a significant milestone by exceeding a market value of $100 billion on June 5. This event attracted significant investor interest and led to a notable increase in daily trading volume, initially rising above $4 billion but since declining to $1.8 billion.
Breaking Out of the Ascending Triangle Formation
Despite a slight pullback, BNB‘s price at the time of writing is $696, marking a 1.4% increase in the last 24 hours. This price level corresponds to a 16.9% increase over the past 7 days. Technical analysis indicates a bullish outlook for BNB, suggesting potential for further gains.
BNB’s price has shown a long-term upward trend, supported by its performance above the 50-day and 200-day simple moving averages (SMA). These moving averages are critical indicators suggesting the continuation of bullish momentum. After a general market fluctuation influenced by Bitcoin’s rise in March 2024, the popular altcoin surged to $650. Following a consolidation period, the price action formed an ascending triangle pattern.
On June 4, BNB broke out of this ascending triangle, reaching an all-time high of $716. Despite the recent price correction, market sentiment for the altcoin remains optimistic, with many investors predicting BNB could soon reach $1,000. Key resistance levels on this upward journey include $732, $850, and the psychological milestone of $1,000. On the downside, the 50-day SMA is expected to provide support around $597.
Former Binance CEO Changpeng Zhao’s Imprisonment Coincides with Price Surge
Interestingly, the recent surge in BNB’s price coincided with the start of former Binance CEO Changpeng Zhao‘s prison sentence. Initially, the SEC‘s legal actions against Zhao negatively impacted Binance, leading to a decrease in trading volumes and market share. However, the strong support from the crypto community for Zhao and Binance helped the exchange regain momentum.
Additionally, Binance’s approach to listing major cryptocurrencies contributed to the increase in trading volume and BNB’s price. Notably, the listing of Notcoin (NOT) significantly boosted user engagement and activity on the platform, as many new users rushed to cash in their AirDrops.
