BNB Surges 25% Amid Regulatory Shifts Eyes $894 Target After ATH

Binance Coin (BNB) has surged to a new all-time high of $810, sparking renewed speculation about a potential parabolic rally reminiscent of the 2021 bull market. The cryptocurrency’s recent performance aligns with historical patterns observed during previous altseasons, raising questions about whether the market is entering a new phase of risk-on sentiment. Analysts have drawn parallels between BNB’s trajectory and its 2021 breakout, which marked the onset of a broader altcoin rally [1].

The current rally has seen BNB rise by 25% since early June, driven by improving macroeconomic conditions and a shift in regulatory momentum. Geopolitical uncertainties that previously dampened demand for risk assets have eased, while legislative developments such as the GENIUS Act and the anticipated CLARITY Act are seen as catalysts for unlocking capital tied up in sidelined markets. These factors have contributed to a resurgence in altcoin activity, with the altcoin season index climbing from 20 to a peak of 55 in June, though it has since corrected to 41 amid overbought conditions [1].

Technical analysis highlights key patterns reinforcing the bullish outlook. BNB’s price action mirrors the ascending channel formation observed in 2021, with the coin currently consolidating near the lower boundary of this structure. The Relative Strength Index (RSI) has rebounded from the 50 level after dropping from overbought territory around 80, suggesting a potential short-term bottom. Meanwhile, the Moving Average Convergence Divergence (MACD) is flattening below the signal line, an early indicator of a possible reversal in the downtrend on the 4-hour time frame [1].

Blockchain Backer, a prominent analyst, has emphasized the correlation between BNB’s price highs and the Totals 3 altcoin market cap index, noting that a new all-time high for BNB historically precedes a parabolic move in altcoins. This pattern emerged in 2021 and may signal a similar dynamic today. If BNB maintains its support at the channel’s lower boundary, it could retest the $810 resistance level, with a breakout potentially triggering a new phase of price discovery. A subsequent move beyond the channel’s upper trendline could target the 1.618 Fibonacci extension at $894, representing a 16.5% gain from current levels [1].

The broader market context remains cautiously optimistic. While the altcoin season index has yet to reach the 75 threshold typically associated with a full-blown altseason, the recent correction has not dampened overall sentiment. Analysts suggest that the current environment, characterized by regulatory clarity and reduced macroeconomic risks, could foster sustained momentum for altcoins. However, caution is warranted as overbought conditions persist, and any further upside will depend on BNB’s ability to maintain its upward trajectory without reversing into a downtrend [1].

Source: [1] [title] [https://cryptonews.com/news/binance-coin-price-prediction-as-new-ath-sets-up-2021-style-run/]