BNB has returned to the $1,300 area after a acute rebound, but the asset may not yet be realized as one analyst believes a run as high as $2,400 is possible.
BNB has been rising since the parallel channel breakout
Like the rest of the cryptocurrency sector, BNB experienced a price crash on Friday, but while the rest of the market was unable to fully recover, the altcoin has already returned to and exceeded pre-crash levels.
Earlier on Monday, the coin even managed to set a modern all-time high (ATH) above $1,370. So, it seems that unlike Bitcoin, the coin’s ATH exploration period has not cooled down yet.
It is possible that BNB will climb further in the near future if the technical analysis (TA) pattern shared by analyst Ali Martinez at X post Is there anything to go through?
The pattern in question is a parallel channel that forms when the price of an asset sees consolidation between two parallel trend lines. The top level of the pattern acts as a barrier of resistance, while the bottom level provides support. Together they keep the price locked in the channel.
If one of these levels is not maintained, the asset may see a continuation of the trend in that direction. A rise above the resistance line is naturally a bullish signal, while a fall below support is a bearish signal.
The three-day BNB price was stuck in a parallel channel for several years before finding a breakout earlier this year, as shown in the chart shared by Martinez.
Since the breakout, BNB has been exploring modern highs, which suggests that the bullish effect of breaking resistance in the parallel channel may be at work. The graph shows that the coin has so far traveled half the distance equal to the width of the channel.
Generally, gaps in a parallel channel are considered to be the same length as the width of the channel. If the cryptocurrency follows this pattern, it may target a level at full height above the channel. “It looks like BNB wants to move towards $2,400!” notes the analyst.
An enhance to the target amount of $2,400 from its current level would represent an enhance in the coin’s price by almost 89%. It now remains to be seen whether the asset will follow the path suggested by the parallel channel.
In another X postMartinez noted that Bitcoin’s one-day price has also been moving in a parallel channel for the past few months.
As you can see from the chart, after the decline, Bitcoin is trading near the midline of the parallel channel. It will now be compelling to see whether the stock continues its decline to the lower $100,000 level or not.
BNB price
As of this writing, BNB is trading around $1,270, up 4% from last week.
