As a seasoned crypto investor with over a decade of experience in this dynamic market, I have seen my fair share of patterns and trends. However, the recent formation of the cup and handle pattern in Binance Coin (BNB) is one that has piqued my interest significantly.
The price of BNB has created an exceptionally uncommon structure that could potentially drive its value up to $1,200 within the upcoming months. As of Tuesday, November 19th, Binance Coin was trading at approximately $616, marking a significant increase of 240% from its lowest point this year. This surge has boosted its market capitalization beyond $88 billion.
BNB Price Analysis As A Cup And Handle Pattern Forms
As a researcher examining cryptocurrency markets, I’ve observed an intriguing pattern on the weekly chart of Binance Coin (BNB), the indigenous token for the BNB Smart Chain. Specifically, it appears to be forming a cup and handle pattern.
This shape is known for its rounded base, followed by some stability or a decline at the peak. It initially began taking form in November 2021 as the coin peaked at $665, then experienced a drop to around $200 between 2022 and 2023.
Initially, after a bounce back, the BNB price approached and even surpassed its 2021 peak earlier this year, marking the completion of the ‘cup’ formation. Since then, it has been developing the ‘handle’ part of the pattern.
By August, it developed a doji formation, contributing partly to its recent surge to $665. If it manages a clear breakout beyond the upper boundary of the cup, this might suggest further increases, possibly reaching $1,200.
The goal is determined by calculating the space between the top and bottom of the cup. In many instances, an asset tends to surge upwards approximately the same distance from the cup’s upper edge.
The difficulty with employing the cup and handle pattern in trading lies in its lengthy maturation process. For instance, the formation of the ‘cup’ portion for Binance Coin (BNB) took approximately three years, and we are now in the eighth month of the ‘handle’ phase.
The price of BNB shows other favorable technical indicators. It consistently stays above its 59-week moving average and is currently positioned at a robust pivot point according to the Murray Math Lines tool. By employing the Murray Math Lines, the next possible peak might reach $875, which represents an extreme overshoot level.
The Multi-Variable Value Ratio (MVRV) for Binance Coin has spiked up to 2.7, suggesting there could be potential for further gains over the next few months.
If Binance Coin’s price falls below $402 (the lower boundary of the doji), the bullish prediction could be rendered ineffective. This would also disrupt the cup and handle pattern, suggesting a possible continuation towards a lower price range, possibly reaching $204.
Binance Coin Has Bullish Fundamentals
In simpler terms, the value of BNB could increase significantly over time due to its strong underlying factors. Just like other cryptocurrencies, it stands to gain from a favorable regulatory climate under the upcoming Donald Trump administration. Moreover, there’s a possibility that a BNB exchange-traded fund (ETF) might be introduced as early as 2025, given its substantial size and liquidity.
In the recent seven-day period, the value of transactions on this decentralized exchange (DEX) has significantly increased by approximately 49%, reaching a total of $11.9 billion. Since its launch, the DEX’s networks have processed tokens valued at a staggering $1.09 trillion. Furthermore, the number of unique addresses participating in the network has risen to more than 489 million.
Just like before, BNB has been burning tokens, which increases the worth of the remaining ones. This month, they carried out their 29th token burn on the network.
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2024-11-19 17:18