BNB Set for Breakout: Is a Bullish Rally Coming?

Eyeing a Major Breakout From the Cup and Handle Pattern

Binance Coin (BNB) is showing a classic Cup and Handle pattern on its weekly chart, a technical analysis formation that often signals a continuation of a bullish trend. This pattern has two key phases: the Cup and the Handle.

The Cup

The “cup” is a rounded bottom formation that starts from a prior high, followed by a prolonged period of decline, accumulation, and eventual recovery. For BNB, the cup began after its all-time high of $670 in May 2021 and developed over the past two years as the price gradually rebounded. This sets the stage for the next phase of the pattern.

The Handle

The “handle” forms as the price consolidates just below the key resistance level. This phase typically shows smaller, sideways-to-downward price movements and represents the final shakeout of weaker hands before a potential breakout. For BNB, the handle phase has played out in recent weeks, with the price hovering near the $669–$720 resistance zone.

Is a Bullish Rally on the Horizon for BNB?

If BNB breaks above the $680 and $720 resistance levels, the Cup and Handle pattern suggests a 70%–80% upside from the breakout point. This could place the next price target in the range of $1,200–$1,300. The target is derived from the depth of the cup and projected upwards, indicating a strong potential for further gains.

As the native token of Binance, the largest cryptocurrency exchange in the world, BNB holds significant intrinsic value. With the current bullish market conditions, a breakout above resistance could further establish BNB as one of the top-performing assets in the ongoing altcoin rally.

Conclusion: BNB’s Potential for a Major Bullish Rally

Binance Coin (BNB) is on the verge of a potential breakout from a long-term Cup and Handle pattern, a bullish setup that could push the price towards the $1,200 mark. As Bitcoin dominance declines and altcoins like BNB gain momentum, BNB could emerge as a standout performer in the crypto market.

However, investors should remain cautious and conduct thorough research before making any investment decisions. The cryptocurrency market remains highly volatile, and potential price movements can be unpredictable.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always perform your own research before investing in cryptocurrencies.