This week, the price of BNB surpassed $300 after escaping a 770-day falling resistance trend line.
A long-term descending resistance trend line has been holding back the BNB price ever since it reached a record high in November 2021. The decline culminated in a June 2022 low of $184. The price thereafter rose, but in April 2023, it tried and failed to break out.
Although it has not yet achieved a new annual high, the BNB price has substantially risen since breaking out of the trend line last week, after the creation of a higher low in October. There had been 770 days of the trend line being in existence when the breakthrough occurred.
One momentum indicator that traders use to determine whether the market is overbought or oversold and if it’s a good time to buy or sell is the Relative Strength Index (RSI).
When the value is over 50 and trending higher, it means that bulls are still in the lead, and when it’s below 50, it means the reverse. A rising weekly RSI and a reading over 50 indicate an upward trend.
The technical analysis of the daily time frame supports the current rise. Reasons being: RSI values, price activity, and wave count.
Using Elliott Wave theory, which takes investor sentiment into account and repeats long-term price patterns, technical analysts can determine the trend’s trajectory.
Assuming a five-wave uptrend, the most probable wave count for the BNB price indicates that it is now in wave three. White is used to indicate the sub-wave count, which indicates a prolonged third wave.
Also Read: Kyber Network Implements Crucial Decisions and Reacts Rapidly to a $48 Million Breach
