The sudden surge observed in the Binance Coin (BNB) market has created a traditional price pattern with a target of $ 560.
The model, called Cup and Handle, is followed if the price draws a large shape (cup) in the shape of the letter “U” and then creates a small model. The small formation is also described as a “handle”. The break after the handle gap indicates an ascending continuum, as it is generally the same length as the depth of the bowl.
For detailed information: What is cup handle formation? How to take a position?
It appears that a similar price trajectory to the Cup and Handle model was followed at BNB. Furthermore, the cryptocurrency’s recent price spike, accompanied by an increase in trading volumes, has pushed it back above the grip range, increasing the possibility of a resumption.
As a result, the $ 560 target is calculated if the BNB price rally continues. On the contrary, all this bullish anticipation could become invalid if the price falls below the resistance of the cup (around $ 437).
BNB price basics
The current rally in BNB price comes after Binance launched a $ 1 billion fund to accelerate adoption across the cryptocurrency industry through its blockchain project, Binance Smart Chain (BSC). $ 300 million has been allocated for projects that want to develop decentralized applications on top of BSC.
Traders often view incubation projects driven by blockchain projects as bullish moves for their local assets. Such events encourage developers to create new projects that increase the demand for their internal tokens.
For example, in early October, Solana, the publicly available base-layer blockchain protocol, announced more than $ 5 million in rewards and seed funding for developers participating in its global hackathon called Ignition. This helped drive the price of Solana’s native token SOL by 35 percent, Cointelegraph reported.
BNB appeared to have gone through a similar period of speculation.
Cryptocurrency data monitoring service Santiment has reported an increase in the accumulation of BNB in wallets that currently contain millions of dollars in tokens. He has detected. Binance Coin whales have bought around 412,000 BNB in the past two weeks, adding 8.7 percent more tokens to their current holdings.
Despite warnings from regulators in some countries, the accumulation of BNB from wealthy investors has increased.
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Binance is also fighting a multi-agency investigation in the US that has caused many hedge funds, including Tyr Capital and ARK36, to stop or downsize the cryptocurrency exchange.
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