• Binance Coin’s next target is $560, following the ‘Cup and Handle’ breakout of the BNB price

  • The ongoing price surge in the Binance Coin (BNB) market is forming a classic bullish chart pattern with a $560 upside target.

    The Cup and Handle pattern appears when the price forms an advance that resembles a U-shaped trend (Cup). This is followed by the formation of a descending channel range (Handle). A break above the Handle range usually results in an upside continuation with a bullish target at length equal to the Cup’s size.

    So far, it appears that BNB has followed a price trajectory resembling the Cup and Handle pattern. Furthermore, the cryptocurrency’s most recent rally, accompanied by an increase in trading volumes, took its prices above the Handle range—a breakout—raising the prospect of further bullish movement ahead.

    As a result, if the BNB price rally continues, it will aim for the Cup and Handle breakout target near $560. If the price falls below the Cup resistance ($437), the entire bullish setup may be invalidated.

    Fundamentals of the BNB price

    The most recent BNB price increase occurred after Binance, through its blockchain project Binance Smart Chain (BSC), announced the launch of a $1 billion fund to accelerate adoption across the entire crypto industry. This budget includes $300 million for projects that will build decentralized applications on top of BSC.

    Traders typically consider incubation events sponsored by blockchain projects to be bullish for their native assets. Such events encourage developers to create new projects on dedicated public/private ledgers, increasing demand for their in-house tokens.

    For example, Solana, a public base-layer blockchain protocol, announced over $5 million in rewards and seed funding for developers participating in its global hackathon called Ignition in early October. As ULTCOIN365 reported, the news boosted the price of SOL, Solana’s native token, by 35%.

    BNB appeared to have experienced a similar period of speculation.

    Santiment, a cryptocurrency data tracking service, also noticed an increase in BNB accumulation across wallets that already hold millions of dollars in tokens. Binance Coin whales purchased approximately 412,000 BNB in the last two weeks, adding 8.7 percent more tokens to their existing holdings.

    Binance is also under investigation by several US government agencies, prompting several hedge funds, including Tyr Capital and ARK36, to either stop or reduce trading on its cryptocurrency exchange.

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