The ongoing Binance Coin (BNB) price rally is tracking a classic bullish pattern with a target of $ 560.
Known as Cup and Handle, the pattern appears when the price registers a U-shaped trend (Cup) followed by a descending channel (Handle). A breakout above the range of this channel leads to a bullish continuation, with a target at a distance equal to the depth of the Cup.
It appears that BNB’s price has drawn a similar trajectory to the Cup and Handle pattern. Furthermore, the recent rally in the cryptocurrency, accompanied by an increase in trading volumes, has pushed the price above the Handle’s range. This breakout raises the odds of an upcoming bullish continuation.
Consequentially, if the BNB rally continues, it will aim for a target close to $ 560. Conversely, if the price falls below the overhead resistance around $ 437, it risks invalidating the entire bullish setup.
Fundamentals of BNB
The new BNB rally began when Binance launched a $ 1 billion fund through its Binance Smart Chain (BSC) project to accelerate adoption across the entire crypto industry. This initiative will devote $ 300 million to projects that are developing decentralized applications on BSC.
Typically, traders consider incubation events backed by bullish blockchain projects for their native assets. These programs push developers to create new products on dedicated public / private registries, increasing the demand for their internal tokens.
In early October, for example, the Solana base-layer blockchain protocol announced over $ 5 million in rewards and seed funding for developers participating in its global Ignition hackathon. The news helped push the price of SOL, Solana’s native token, by 35%, as reported by Cointelegraph.
It appears that BNB is seeing a similar wave of speculation.
The Santiment crypto monitoring service noted a greater accumulation of BNB among wallets that already have millions of dollars in the token. In the past two weeks, Binance Coin whales have bought around 412,000 BNB, adding another 8.7% to its existing reserves.
The buildup of BNB among wealthier investors has exploded despite warning signs from regulators in some countries.
Related: Binance Targets Ireland for ‘Centralized’ Headquarters
Additionally, Binance remains under investigation by several US agencies that have urged numerous hedge funds, including Tyr Capital and ARK36, to suspend or curtail trading on the cryptocurrency exchange.
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