Binance, the world’s biggest cryptocurrency exchange, recently announced a $1 billion fund to support project development on Binance Smart Chain. The news was well-received by investors, pushing Binance Coin’s price closer to a possible breakout.
Binance Coin Reaches Pivotal Resistance
Binance Coin could be on the verge of breaking out soon, although it faces some critical resistance.
Binance Coin (BNB) has enjoyed significant upward price action over the past 30 hours. The third-largest cryptocurrency by market cap has surged by more than 17.5%, going from a low of $398 to a high of $467. Despite the sudden bullish impulse, BNB has reached a crucial obstacle in its uptrend.
The upper trendline of a symmetrical triangle that developed on the daily chart could prevent Binance Coin from advancing further. Since mid-May, this critical resistance level has kept rising prices at bay, leading to a correction each time BNB has tested it.
Similar market behavior could result in a rejection that pushes this cryptocurrency towards the triangle’s lower trendline at $360.
Nonetheless, BNB’s network activity suggests that a breakout could be imminent. On-chain and social volume, as well as daily active addresses, have been steadily rising since the beginning of the month. These fundamental metrics can help determine whether a digital asset is prepared to advance further.
When these three indexes surge in unison, they form a bullish signal for future upward price action.
The optimistic outlook should be clearer if BNB makes a decisive daily candlestick close above the triangle’s upper trendline at $470. Binance Coin could rise by nearly 70% to reach a new all-time high of $775. This bullish target is determined by measuring the triangle’s y-axis height and adding that distance upward from the breakout point.