Crypto News- A thorough examination of the daily time frame reveals a compelling narrative for the BNB token price. Since April, BNB had been navigating beneath a descending resistance trend line, eventually hitting a low of $202 on October 9.
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However, a significant turnaround occurred thereafter. On October 15, BNB staged an impressive breakout from the descending resistance trend line, marking the end of a 182-day trend. The surge peaked at $258 on November 10. Despite this breakthrough, the coveted $260 horizontal resistance, in place since June, proved elusive. Instead, BNB encountered a barrier, evident in the form of a distinct long upper wick, solidifying its status as resistance (denoted by the red icon).
Adding a positive twist to the BNB narrative was Binance’s announcement on November 11 about the launch of the Binance Web3 Wallet. This secure and self-custodial crypto wallet seamlessly integrates with the Binance app, offering an array of new features, notably cross-chain token swaps facilitated through the Binance bridge. The BNB team also shared a tutorial on X (formerly Twitter) guiding users on harnessing the wallet’s capabilities.
Examining the Relative Strength Index (RSI) on the daily time frame provides optimism for the ongoing surge. The RSI, a vital momentum indicator, guides traders in assessing whether a market is overbought or oversold, helping them make informed decisions on asset accumulation or sale.
With the RSI comfortably above 50 and on an upward trajectory, the bulls enjoy a favorable position. Moreover, the persistence of the bullish divergence trend line (marked in green), preceding the recent BNB price surge, adds another layer of positivity. A bullish divergence, characterized by a simultaneous increase in momentum and decrease in price, often foreshadows a bullish trend reversal.