Binance Coin’s next big price hike and why it depends on this ‘triangle’
  • BNB was trading above the support line of a symmetrical triangle pattern.
  • BNB remains at risk of downside as its funding rate was negative.

The recent market rally has seen Binance Coin [BNB] A sharp bounce off the support line of a symmetrical triangle pattern.

This pattern is formed when the asset price hits various lower highs and upper lows. It indicates that the asset price continues to be squeezed between buyers and sellers, with buyers pushing the price higher to meet resistance and sellers pushing the price lower to find support.

When this situation occurs, the assets involved are said to be consolidated to a certain extent.

Will they rally together in resistance?

At the time of writing, BNB is valued at $583.84, up 3% from the support level at $566. In order to assess whether the altcoin can rise towards and above the upper trend line of the triangle, a good starting point is to first consider market sentiment.

according to Santiment According to the data, the coin’s weighted sentiment is 0.607 and is trending up at the time of writing. The positive value of this metric suggests that the BNB market is receiving positive sentiment from participants.

BNB Weighted Sentiments

Source: Santiment

Key momentum indicators for BNB also support this bullish outlook: At the time of writing, the Money Flow Index (MFI) is at 65.61 and rising, indicating that market participants are favoring accumulating rather than distributing their BNB holdings.

Similarly, the altcoin Chaikin Money Flow is on an upward trend and is above the zero line at 0.07. This indicates a steady inflow of liquidity into the BNB market. If this metric continues to rise, it will mean an increase in demand for the cryptocurrency.

BNB 1 Day Chart

BNB/USDT chart. Source: TradingView

If the market sentiment remains bullish, buyers can push the price of BNB above the resistance line of the triangle, which could see the coin surge to $596 and above $643.


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BNB remains at risk

Conversely, if this bullish prediction proves invalid and bearish pressure increases, BNB price may sink below the triangle and trade around $520.

BNB 1 Day Chart TradingView

BNB/USDT chart. Source: TradingView

The likelihood of this happening is heightened by how significant the negative funding rates have been for altcoins over the past few weeks.

actual, Coin GlassThe coin has been experiencing a mostly negative funding rate since April 23. As of May 15, BNB’s funding rate fell to a multi-month low of 0.106%.

The last time the coin’s funding rate was this low was in February.

BNB Funding Rate

Source: Coinglass

When an asset’s funding rate is negative, more traders are holding short positions, which indicates that more traders are anticipating a fall in the asset’s price and are buying the asset in hopes of it rising in price.

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