BNB price has formed an extremely rare pattern that could push its price to $1,200 in the coming months. Binance Coin was trading at $616 on Tuesday, November 19, up by 240% from the year-to-date low, bringing its market cap to over $88 billion.
BNB Price Analysis As A Cup And Handle Pattern Forms
Binance Coin, which is the native token for the BNB Smart Chain, has formed a cup and handle pattern on the weekly chart.
This pattern is characterized by a rounded bottom and some consolidation or a pullback at the upper side. It started to form in November 2021 when the coin rallied to a high of $665 and then pulled back to $200 in 2022 and 2023.
BNB price then rebounded and retested the 2021 high earlier this year, completing the formation of the cup. It has been forming the handle section since then.
In August, it formed a doji pattern, which partially explains why the coin has rebounded to $665. Therefore, a clean break above the upper side of the cup could point to more gains, potentially to $1,200.
This target is established by measuring the distance between the upper and lower side of the cup. In most periods, an asset breaks out and rises a similar distance from the upper side of the cup.
The challenge for using the cup and handle pattern in trading is that it takes a long time to completely work out. In BNB’s case, the cup section took over three years to form, and the handle is in its eighth month.
BNB price has other positive technicals. It has constantly remained above the 59-week moving average and is sitting at the strong pivot release of the Murrey Math Lines tool. Using the MML, the next potential target will be the extreme overshoot level at $875.
Binance Coin’s MVRV indicator has jumped to 2.7, meaning that it has more room to run in the coming months.
The bullish Binance Coin price forecast will become invalid if it drops below $402, the lower side of the doji. If that happens, it will invalidate the cup and handle pattern and point to more downside, potentially to $204.
Binance Coin Has Bullish Fundamentals
The BNB price has more fundamentals that could help push its price higher in the long term. Like other coins, it will benefit from a friendly regulatory environment in the upcoming Donald Trump administration. Because of its size and liquidity, a potential BNB ETF cannot be ruled out as soon as in 2025.
Meanwhile, the network is doing well as the DEX volume jumped by over 49% in the past seven days to $11.9 billion. Its DEX networks have handled tokens worth over $1.09 trillion since its inception. The number of unique addresses in the network has jumped to over 489 million.
BNB has also continued to burn tokens, making the remaining coins more valuable. The network implemented its 29th token burn earlier this month.
Frequently Asked Questions (FAQs)
BNB coin needs to rise by 94% to get to the target of 1,200%. Such a big move is possible in the crypto industry since the coin has already jumped by 214% from its lowest point this year.
First, it needs a conducive crypto environment to get to $1,200 in the coming months. Second, it needs to clear the upper side of the cup and handle pattern. Finally, it will need to rise above the key resistance level at $1,000.
The key level to watch will be at $402, the lower side of the handle section. A drop below that level will invalidate the bullish view and point to more losses.
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/this-rare-pattern-could-propel-bnb-price-to-1200/
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