BNB Price Consolidates Above $655 Awaiting Breakout

BNB, the native cryptocurrency of the Binance Smart Chain, is currently showing positive signs of an upside breakout as bullish momentum builds. The price of BNB has been consolidating around key resistance levels, with traders and analysts closely monitoring its price action for any indications of a breakout.

The current price of BNB is trading above $655 and the 100-hourly simple moving average. The price has formed a key contracting triangle with resistance at $662 on the hourly chart of the BNB/USD pair. To start another increase in the near term, the pair must stay above the $655 level. If BNB fails to clear the $662 resistance, it could start another decline. Initial support on the downside is near the $655 level and the 61.8% Fib retracement level of the upward move from the $650 swing low to the $666 swing high. The next major support is near the $650 level. The main support sits at $644. If there is a downside break below the $644 support, the price could drop toward the $632 support. Any more losses could initiate a larger decline toward the $620 level.

BNB price is attempting to recover from the $620 support zone. After forming a base above the $620 level, BNB price started a fresh increase. There was a move above the $645 and $650 resistance levels. The price even surged above the $660 level. A high was formed at $666 before there was a downside correction. The price dipped below the 50% Fib retracement level of the upward move from the $650 swing low to the $666 swing high. The next resistance sits near the $665 level. A clear move above the $665 zone could send the price higher. In the stated case, BNB price could test $672. A close above the $672 resistance might set the pace for a larger move toward the $680 resistance. Any more gains might call for a test of the $700 level in the near term.

BNB has formed several bullish patterns on different timeframes, including a double bottom formation and a large cup-and-handle pattern. These patterns suggest that BNB could be gearing up for a significant upside move if it breaks above key resistance levels. The double bottom formation, which was created after BNB rebounded from a major low, indicates that bears failed to push prices lower after two attempts. This pattern provides strong support for the cryptocurrency and suggests that bulls are in control of the market. The cup-and-handle pattern, which spans multiple months on high timeframe charts, is nearing completion within a tight descending channel. The neckline of this pattern lies in the $660 to $670 range, and if BNB closes above this resistance area with volume confirmation, it could trigger the next upward move. According to the analyst's forecast, a confirmed breakout could send BNB toward the $700 to $750 region, based on the depth of the cup formation. Historical patterns show that similar cup-and-handle breakouts have preceded strong rallies in the past. The current formation is symmetric and aligns with typical bullish continuation phases. Volume confirmation will be key to validating any breakout attempt.

In addition to these patterns, BNB has also formed an inverse head and shoulders pattern on lower timeframes. This pattern reinforces the idea of a local trend reversal and supports further upside potential. The presence of these two reversal signals suggests that BNB could be poised for a significant move higher if it breaks above key resistance levels. The $660 to $670 area remains the most critical resistance range for BNB. Both the cup-and-handle and inverse head-and-shoulders patterns converge around this zone. A break above $670 with strong momentum could open the path for a rally to $700 or $750. Failure to close above $670 may lead to renewed selling pressure, and a breakdown from the $660 support area could send BNB back toward $650 or lower. The short-term direction will be defined by price action in this consolidation zone.

Overall, the technical outlook for BNB is bullish, with several key patterns suggesting that the cryptocurrency could be gearing up for a significant upside move. However, traders should remain cautious and monitor price action closely for any signs of a breakout or reversal. The hourly MACD for BNB/USD is gaining pace in the bullish zone, and the hourly RSI for BNB/USD is currently above the 50 level. Major support levels are at $655 and $650, while major resistance levels are at $662 and $665.