Decoding BNB’s ‘cup & handle’ breakout – Is $1,300 in sight?
Key Takeaways
BNB confirmed a cup-and-handle breakout, with Spot demand rising and 64% lengthy positioning in Derivatives. Might this bullish conviction be sufficient to push the token towards $1,300?
Binance Coin [BNB] broke out of a multi-year vary, signaling renewed bullish momentum and a doable continuation.
The construction confirmed a clear breakout. If momentum held, greater ranges remained probably.
On the 2nd of September, BNB traded round $842.93, down 1.14% within the final 24 hours, but nonetheless holding firmly above vital help zones.
Regardless of minor intraday retracements, the broader outlook highlighted rising investor confidence.
Might the cup-and-handle breakout gasoline additional positive aspects?
BNB’s weekly chart confirmed a textbook cup-and-handle breakout, a bullish continuation sample typically related to sturdy upside potential.
The breakout occurred after the worth cleared the $793 resistance, which beforehand capped rallies. Now, with help zones established between $761 and $793, the trail towards $891 turned more and more viable.
Nevertheless, the Stochastic RSI hovered close to 74.8, hinting that pauses or shallow pullbacks may happen earlier than any continuation. Even so, the broader trajectory aligned with a ~$1,300 projection, echoing earlier cycle breakouts.
Supply: TradingView
Is rising Spot exercise an indication of sustained demand?
Spot buying and selling exercise intensified, as mirrored by the Spot Quantity Bubble Map, which confirmed an increasing measurement and depth.
The surge indicated elevated buy-side participation following the breakout, as bigger quantity clusters typically align with heightened investor engagement.
In truth, related surges traditionally accompanied sustained rallies moderately than remoted spikes.
That shift underlined rising conviction in BNB’s newest transfer and helped validate the bullish technical image.
Supply: CryptoQuant
Do lengthy merchants dominate the Derivatives panorama?
Derivatives positioning highlighted a powerful bullish tilt, with 64.26% of accounts lengthy versus 35.74% quick, at press time, leading to a Lengthy/Quick Ratio of 1.80.
This distribution prompt merchants are closely skewed towards bullish bets, amplifying the case for additional upside.
Nevertheless, such imbalances carried liquidation danger if pullbacks deepened.
Nonetheless, with BNB consolidating above earlier resistance, this lengthy skew mirrored confidence in greater targets.
To sum up, BNB’s breakout above key resistance, supported by spot exercise and robust lengthy dealer positioning, suggests potential continuation towards $1,300.
Whereas overbought RSI readings indicate near-term pullbacks are doable, the broader context stays bullish.
Thus, if spot demand holds agency and spinoff enthusiasm persists, BNB may lengthen its rally within the present cycle.
