Despite the recent volatility, Binance Coin (BNB) appears to be showing resilience, with its price holding above $500 since September 11th and currently trading at $552.
Given the growing market attention, this analysis explores why BNB may be heading towards a higher value in the near future.
Binance Coin Momentum Turns Bullish
Based on the daily chart, the Binance Coin (BNB) Moving Average Convergence Divergence (MACD) indicator is currently in the positive area. The MACD measures momentum by assessing the relationship between the 12-day EMA (blue) and the 26-day EMA (orange) to identify potential trend reversals.
Typically, when the 26-day EMA crosses the 12-day EMA and the MACD value turns negative, sellers gain control and momentum becomes bearish, often causing prices to fall. Historically, such scenarios have resulted in the BNB erasing some of its previous gains.
However, in this case, the 12-day EMA has crossed the 26-day EMA, indicating that buyers are currently dominant. This crossover suggests that upward momentum is building and the price of BNB could rise even further if buying pressure continues.
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In addition to the MACD, the Chaikin Money Flow (CMF) indicator also supports a bullish outlook. CMF measures the rate of accumulation or distribution over a period of time. When the CMF rises above the zero line, it suggests that accumulation—buying pressure—is stronger than distribution, signaling bullish momentum.
Currently, the CMF on the daily BNB/USD chart has moved above the zero line, indicating that bulls are working to push the cryptocurrency to higher values.
BNB Price Prediction: Run to $625 Begins
On the same daily chart, BeInCrypto noticed the formation of a falling wedge, a bullish technical pattern. Typically, a wedge appears after prices at swing highs reach lower values and prices at swing lows do the same.
However, as trend lines converge, sellers begin to lose momentum and buyers benefit from fatigue. Once buying pressure increases, the price of BNB may rise above its current position.
From the looks of it, the coin is almost certain to break through the resistance at $574.60. For this to happen, bulls must defend the $517.50 support level. If successful, BNB could rise to $625 in the short term.
Read more: Binance Coin (BNB) Price Prediction for 2024/2025/2030
However, the forecast may not be valid if BNB fails to overcome the resistance. In this case, the coin could fall below the $517.50 support.
