BNB is back near $1,300 after a sharp rebound, but the asset may not be done yet as one analyst thinks a run all the way to $2,400 is possible.
BNB Has Been Rising Since Parallel Channel Breakout
Much like the rest of the cryptocurrency sector, BNB suffered a price crash on Friday, but while the rest of the market has been unable to make a full recovery, the altcoin has already retraced to the pre-crash level, and surpassed it.
Earlier on Monday, the coin even managed to set a new all-time high (ATH) above $1,370. Thus, it would appear that unlike Bitcoin, the coin’s ATH exploration period hasn’t cooled off yet.
And it’s possible that BNB will only climb further in the near future, if the technical analysis (TA) pattern shared by analyst Ali Martinez in an X post is anything to go by.
The pattern in question is a Parallel Channel, which forms whenever an asset’s price observes consolidation between two parallel trendlines. The upper level of the pattern acts as a resistance barrier, while the lower one provides support. Together, they keep the price locked inside the channel.
When one of these levels fails to hold, the asset can witness a continuation of trend in that direction. A surge above the resistance line is naturally a bullish signal, while a fall under the support a bearish one.
The 3-day price of BNB was stuck inside a Parallel Channel for a few years before it found a breakout earlier this year, as the chart shared by Martinez shows.
Since the breakout, BNB has been exploring new highs, implying the bullish effect of the Parallel Channel resistance break may be in effect. From the graph, it’s apparent that the coin has so far climbed up half as much distance as the width of the channel.
Generally, Parallel Channel breakouts are considered to be of the same length as the width of the channel. If the cryptocurrency is following this pattern, then it may be targeting the level a full height above the channel. “It looks like BNB wants to push toward $2,400!” notes the analyst.
A surge to this target of $2,400 from the current level would imply an increase of almost 89% for the coin. It now remains to be seen whether the asset will follow this path suggested by the Parallel Channel.
In another X post, Martinez has pointed out that the 1-day price of Bitcoin has also been traveling inside a Parallel Channel for the last few months.
As displayed in the chart, Bitcoin is trading near the midline of the Parallel Channel after its plunge. It will now be interesting to see whether it continues its decline to the $100,000 lower level or not.
BNB Price
At the time of writing, BNB is trading around $1,270, up 4% over the last week.
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