Binance Coin prices already reached a high of almost USD 700 back on November 8th, 2021. However, soon afterwards, the collapse of cryptocurrencies happened, bringing prices lower. After a drop of 50% for BNB prices, not much has changed, which is why we would like to assess again. The crypto market is setting up for another bullrun as prices are mostly up in the past 7 days. Today, BNB formed a new trend, which could also cause prices to rise. Will BNB really breakthrough and reach $500 soon? In this BNB price prediction article, we assess BNB prices from a purely technical perspective, keeping everything else constant in our analysis.
What should happen for BNB price to reach $500?
Binance Coin price formed a trend line during the recent move down. This trend line constantly causes prices to fall, which is why it must be broken for an upward movement to take place. A broken downtrend line is an indicator that the price is about to reverse and start an uptrend. Because of this, this is the most important thing that needs to happen for Binance Coin price to reach $500. In figure 1, the trendline was just broken and BNB price is right at the psychological price of $400. Once BNB crosses $430, we can become more sure that prices are heading towards the $500 target.
Keep in mind to always consider fakeouts, as they occur frequently with cryptos. Fakeouts allow prices to break those trendlines or important areas, but only for a brief time before continuing their previous trend. That’s why it is always advised not to place tight stop-loss prices right on those areas.
BNB Price Prediction – Beware of THIS when Buying BNB
As the red trendline is heading towards support ($340), the price could be in a descending triangle. Since the price formed the triangle after a descent, we assume that this triangle will also be noticed by the market. Thus, the price could break down with a probability of about 70%. However, since prices have already broken this triangle upwards, for several days now, and since the overall crypto market is on the rise, this downward scenario is unlikely for now. Traditional financial markets are very tense currently, and cryptocurrencies are being promoted as solid alternatives. The flock of capital towards those cryptocurrencies will definitely refrain from the scenario of falling prices.
In any case, it is important to keep a close look at the crypto market, as in this current critical case, fundamental news trump technical analysis. If the entire crypto market is crashing, BNB prices will follow.
