Date: Wed, February 12, 2025 | 07:14 PM GMT
The cryptocurrency market has shown strong recovery in the last few hours after an initial drop following the CPI data release. Bitcoin (BTC) briefly dipped to $94K, but has since rebounded above $97K, fueling bullish sentiment across the altcoin market.
Amid this recovery, Binance Coin (BNB) has gained over 9%, reclaiming a $98 billion market cap and overtaking Solana (SOL) in rankings. The strong momentum has placed BNB in the spotlight as it approaches a critical breakout level.
Key Breakout Ahead?
BNB is currently trading at $688, forming a descending broadening wedge pattern after facing rejection at $793 on December 4, 2024. Since then, the token has been consolidating within this pattern. However, a bullish bounce from the lower support of the wedge on February 2, at $503, has led to a strong rebound, with price now testing the upper resistance of the wedge.
Additionally, BNB has gained support from the 100 SMA, adding to the bullish outlook.
If BNB successfully breaks out of the wedge pattern, followed by a retest, it could rally towards its recent high of $793, representing a potential 16% gain from current levels. A move above this level could trigger a larger bullish rally, with further upside potential.
The MACD indicator is showing signs of a bullish crossover, suggesting that buying momentum is increasing. This further strengthens the case for a potential breakout in the coming days.
Final Thoughts
BNB is showing strong resilience, hinting at a potential trend reversal. However, further upside will depend on broader market conditions, particularly Ethereum (ETH) and Bitcoin’s dominance. If BTC maintains its recovery, BNB could see further bullish continuation in the near term.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.