BNB was consolidating inside a bullish pennant pattern, and a breakout could result in an ATH.
- BNB’s price increased by more than 4% in the last seven days. Metrics and indicators hinted at a continued price rise.
Binance Coin [BNB] investors were having a great time as the coin’s price rallied during the last week. However, the momentum has declined in the last few hours.
Though this looked bearish at first glance, it might be an indication of yet another bull rally.
BNB’s silent move
After a comfortable rally of 4% last week, the coin slowed down. According to CoinMarketCap, BNB’s price only moved up marginally in the last 24 hours.
At the time of writing, the coin was trading at $602.68 with a market capitalization of over $88.9 billion. The decline in momentum resulted in a drop in BNB’s 1-week price volatility.
Apart from this, social metrics were also affected.
AMBCrypto’s look at Santiment’s data revealed that its Social Volume declined sharply last week. Its Weighted Sentiment also dropped sharply on the 26th of May.
This clearly indicated that bearish sentiment around the coin was dominant in the market.
Source: Santiment
But BNB had a trick up its sleeve that could turn the situation around. A bullish pennant pattern appeared on the coin’s price chart in mid-March. Since then, BNB has been consolidating inside the pattern.
At press time, the altcoin was on its way to test the upper limit of the pattern. So, a breakout above that could kick off yet another bull rally.
In fact, if the bull rally happens, then the coin might soon test its all-time high of $686, which it touched back in 2021.
Source: TradingView
Will BNB manage to break out?
AMBCrypto then analyzed BNB’s on-chain data to see whether it hinted at a successful breakout of the bullish pennant pattern.
As per our analysis, BNB’s trading volume declined while its price volatility dropped. This hinted at a trend reversal soon.
Its Funding Rate has also remained low, further increasing the chances of a rise in volatility in the coming days.
Source: Santiment
The coin’s price was sitting on its 20-day Simple Moving Average (SMA), hinting at a rebound.
On top of that, the Chaikin Money Flow (CMF) also registered a sharp uptick, which suggested that bulls might step in soon and, in turn, allow BNB to break above the bull pattern.
Source: TradingView
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However, in order to sustain a bull rally, BNB must go above a strong resistance level near $613. This seemed to be the case, as liquidation would rise sharply at that mark, which can cause a price correction.
A successful breakout above that would allow BNB to target new highs.
Source: Hyblock Capital
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