BNB recently reclaimed a significant resistance area that it has struggled with for the past two years. The news marks an important inflection point and lays the groundwork for a upcoming advance towards $1,000 and possibly much higher. Analysts cite on-chain data, among other things, and historical price behavior as evidence that we are headed towards this bullish trajectory.
The breakout matches a similar breakout pattern seen in 2020 when BNB was in an ascending triangle pattern. This consolidation came just before Bitcoin’s rally to $690. Our recent analysis indicates a repeat of this trend on a national level.
Looking ahead, technical projections show $1,000 as the next technical support price target for BNB. This price level acts as a major psychological level and the key technical resistance point.
Secondly, the BNBChain ecosystem is booming with usage and new projects, which provides additional fundamentals to make a positive case for BNB. BNBChain’s TVL has experienced an impressive boom recently. This increase is driven by a surge in new project deployments and an increase in active wallet addresses. Taken together, these metrics lead us to conclude that there is organic growth and heightened user interest in the BNB ecosystem.
The current price targets are based on our interpretation of the bear flag pattern. They reference what we all remember as the breakout of 2020. The extent to which the cryptocurrency can continue holding above this former resistance-turned-support will be key in determining whether or not these bullish projections come to fruition.
The recent uptick in activity on BNBChain is an indication that confidence is returning giving credibility to the platform’s utility and potential. This surge in adoption may be the catalyst for BNB’s price to continue skyrocketing as it nears $1,000.
