BNB is currently trading at $31 after a massive price move today from a clear breakout of an important daily chart pattern. The digital asset is on the verge of surpassing the market capitalization of BCH at $4.492 billion and only needs $10 million more to position itself as the 5th largest cryptocurrency behind XRP, USDT, ETH, and BTC.
The daily chart presented a symmetrical triangle formed on September 30. The upper trendline was the most critical resistance level in the short-term, bulls managed to push the price above it today in great fashion. BNB is up 9% from a low of $28.4 to a high of $31.12.
The bullish breakout indicates that bulls are in full control of the daily chart and BNB price is eying up the 2020-high at $33.38. The RSI is on the verge of overextension which could pose a threat to the bulls.
However, there is a clear example of how an overextended RSI doesn’t always equate to a major pullback. Back in July 2020, the RSI got overbought briefly and the price of BNB dropped from $19 towards $16.54 before resuming its bullish uptrend towards $20. The RSI then got overbought several times until $23.54, but it clearly didn’t stop the price from climbing more.
The Long-Term Picture For BNB
Observing the weekly chart, we notice a clear uptrend that is leading the price of BNB towards its all-time high at $39.59. The 50-SMA and the 100-SMA had a bullish cross on August 2020 and have remained that way until now.
Besides the resistance level at $33.38, bulls are virtually facing no other crucial resistance points until the all-time high. The only concerning trend for BNB is the lack of trading volume. During March 2020, the volume spiked to $42 million per week and has been slowly declining to a low of 9.4 million on June 29.
The trading volume had another major spike on September 7 to 39 million, however, it is already slowing down significantly with the last week only getting 16.9 million. This could be a small indicator that bulls aren’t as strong as it seems.
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