BNB appears to have entered a triangle formation with the intersection of the ascending and descending patterns set for Sept. 30. What will happen next?
BNB Due for a Breakout?
A writer on Coin Telegraph recently observed that it appears BNB entered a symmetrical triangle formation on Aug. 10, when it faced a descending trendline at a resistance of $335 — and in the five weeks since, has struggled at around $280, “the exact intersection between the two conflicting ascending and descending patterns”.
After looking at factors such as price deposits, Total Value Locked (TVL) and dApp usage, the writer concludes that “the symmetrical triangle pattern crossing at $280 on Sept. 30 is likely a bullish trigger for BNB’s price.”
Currently, the BNB coin is the third-largest cryptocurrency on the basis of market capitalization, excluding stablecoins. In terms of the value of smart contracts on the chain itself, BNB Chain has around $6.6 billion in TVL.
As noted by Coin Telegraph, BNB has outperformed the general altcoin market by 15% over the past three months. Additionally, BNB’s TVL drop of 12.5% over the past three months is actually better than declines posted by competitors such as Solana (-27.5%) and Avalanche (36%).
Those numbers could suggest that BNB, while running ahead of the competition, could have more room for a steep downturn.
Put another way, our opinion is BNB’s relative success in terms of price action and TVL offers just as much future downside as upside for BNB in the short- and mid-term.
While we welcome the writer’s prediction of a possible BNB breakout at the end of the month, unfortunately our optimism is more guarded, especially given the uncertain (and still bearish) macro environment.
Of course, we’ll have our questions answered by how BNB actually performs after Sept. 30. We’ll return with a follow-up to see how accurate our predictions were (or weren’t)!
Source : bsc.news
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