- Binance Coin price rebounds the hardest from the freefall to $225.
- A double-bottom pattern bolsters BNB into a recovery trajectory targeting $440.
Binance Coin price is trading 30% higher than the recently tested support at $225. Recovery was quick and sharp, perhaps due to the immense buyer congestion at the support area. Moreover, investors may have taken advantage of the lower prices to enter the market and speculate gains toward $440.
At the time of writing, BNB seems to be battling an immediate resistance at $300. If broken, the uptrend will have a clear path for gains eyeing $440.
Will the double-bottom pattern push BNB price higher?
Binance Coin seems to have formed a double-bottom pattern on the four-hour chart after the selloff took a breather at $225. The chart pattern is exceptionally bullish and often results in a trend reversal.
Note that the double-bottom pattern forms when an asset tests a support point a couple of times without breaking through. The two bottoms are separated by a moderate price peak, as illustrated on the BNB chart.
A breakout from the pattern is confirmed in technical analysis when the asset jumps above a resistance level equal to the peak. As for Binance Coin, the recovery is expected to continue to $440 ahead of another significant upswing to new record highs.
BNB/USD four-hour chart
In addition to the technical pattern, the Moving Average Convergence Divergence (MACD) has reinforced the bullish outlook on the four-hour chart. Keep in mind that buyers responded to the bullish signal when the MACD line (blue) crossed above the signal line. The uptrend will gain more traction as soon as the MACD lifts into the positive region.
The bulls’ aggressiveness has been illustrated by the Relative Strength Index’s (RSI) approach to the overbought areas. A break into the region above 70 will initially trigger more buy orders before overbought conditions begin to take effect. Therefore, closing the day above the immediate hurdle at $300 is crucial to sustaining the anticipated breakout.
How BNB price upswing may be invalidated
It is worth mentioning that if overbought conditions kick in faster than expected, the uptrend will be invalidated. Closing the day under $300 will also delay the recovery and perhaps surmount the buying pressure, resulting in another correction to $285 and $225, respectively.