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Highlights
- Cup and handle pattern formation on BNB price signals impending bullish continuation
- Key levels to watch are at $660 and $700 to the upside
- An extremely bullish analysis places the target price above $1,100
BNB price has been largely lethargic and in a consolidation phase during the recent market rally. Furthermore, multiple failed attempts at breaking out of the $660-$670 have resulted in a double top formation on the daily chart. However, some analysts believe the coin is primed for a breakout that could send it to $1,000. We discuss how that could play out.
BNB Price Pattern Hints $1,000 Target: Analyst
According to influential crypto analyst ZAYK Charts on X, BNB price has recently broken out of a bullish pennant pattern on the three-day chart. His target price is based on the price breakout from the long-term consolidation level at the confluence of the ascending support and descending resistance lines.
The thesis of his analysis is based on adopting the “flag pole” on the bullish pennant pattern as the yardstick for measuring the potential price headroom. In this case, the pole measures approximately $407. Adding that price gain to the current price of $655 would carry BNB well past $1,000.
For BNB price to hit $1,000, it would have to rise by about 35% from its current level. That seems like a strenuous task for an asset that has only gained 9.5% in the last month amidst a market-wide rally. However, ZAYK Charts isn’t the only bullish analyst about BNB’s price hitting the triple-digit price mark.
Here’s Why Binance Coin Price is Ready for Exponential Rally
Another analyst, Crypto Zeinab posted a bullish outlook for BNB price, based on cup and handle pattern formations between 2018-2021 and 2021-2024. He juxtaposes the two periods, with his thesis built on the assumption that the asset has been accumulating and could repeat the same trajectory once it breaks out.
A cup and handle pattern is a price formation consisting of two distinct shapes. The larger portion is the “cup”, which is a round-bottomed shape formed when the price trends downward and then accumulate before rising back up.
The “handle” is a short downward-facing trendline formed following a brief period of consolidation that comes after the cup’s formation. A breakout to the upside confirms bullishness. Conversely, a downside breakout invalidates that narrative.
The price target is obtained by measuring the depth of the cup from its base to the breakout level, which is aligned with the handle’s highs.
Crypto Zeinab’s analysis is extremely bullish, and it suggests that Binance Coin price is at an inflection point within the “handle” area. A breakout above $654 followed by a confirmation above the $700 mark could trigger a rally deep into the $1,000s territory.
On the chart below, the cup’s base on the chart is around $165, while the handle’s breakout level roughly corresponds to $660. This gives us a depth of $495 ($660-$165). Adding that to the current price of $655 brings the target to $1,100.
Based on the analyses above, there’s a good chance that BNB price could rally to $1,000 and potentially go past that mark. However, this is based on the assumption that the asset will maintain sustained trading volumes. It will also depend on breaking above intermediate resistance levels like $700, $800 and $900, which could trigger profit-taking. In addition, traders should keep an eye on shifting market fundamentals such as Bitcoin price action.
Frequently Asked Questions (FAQs)
1. What does the formation of cup and handle pattern on BNB price suggest?
2. What are the key resistance levels to watch out for on the Binance coin price chart?
3. What could prevent Binance coin from hitting $1,000?
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