The BNB market was active in the last 24 hours with an increase of almost 8%. Accordingly, the chart creates a classic bullish pattern with a target of up to $ 560.

This pattern is called the “Cup and Handle” and occurs when price has a U-shaped upward movement (the Cup) and is followed by a descending channel range (the Handle). Breakouts in the grip area usually result in a bullish continuation pattern with a target length that matches the size of the cup.

So it looks like BNB took a course that looks like a cup and handle pattern. In addition, the recent rally has been accompanied by an increase in trading volume and has brought the price above the handle range (breakout), increasing the likelihood of continuing to trade higher in the short term.

Price table BNB / USD 4 Hour with cup and handle pattern | The source: TradingView

Therefore, if the upward momentum continues, the BNB is aiming for a cup-and-grip breakout near $ 560. Conversely, if the price falls below the resistance of the cup (~ 437) there is a risk that the entire bullish setup will be invalidated.

NS element basic give BNB price

The latest BNB bull run comes after Binance launched a $ 1 billion fund through the Binance Smart Chain (BSC) blockchain project to accelerate adoption across the crypto industry. The fund provides $ 300 million for projects that build decentralized applications on BSC, as reported by Bitcoin Magazine.

Traders often view blockchain project-backed incubation events as optimistic about their original assets. Such events provide an incentive for developers to build new projects on the platform’s public / private ledgers, which boosts demand for internal tokens.

For example, Solana, a public grassroots blockchain protocol, announced in early October a reward of over $ 5 million and seed funding for developers participating in a global hackathon called Ignition. The news helped raise the price of SOL, Solana’s native token, by 35%.

BNB appears to have seen a similar round of speculation.

Cryptocurrency data tracking service Santiment has also noted an increased accumulation of BNB in ​​wallets with tokens in the millions. Whales with 10,000 to 100,000 BNB have bought around 412,000 BNB in ​​the past 2 weeks, adding 8.7% of the tokens to their existing holdings.

BNB whale owner data | The source: mood

Wealthy investors increased their BNB accumulation despite warnings from regulators in several countries.

Binance is still under investigation by the agency in the US and this has resulted in hedge funds like Tyr Capital and ARK36 ceasing or reducing trading on the exchange.

You can see the BNB price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to Cointelegraph

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