Binance Coin [BNB] has caught investors’ attention with a confirmed bullish pennant breakout, highlighting the potential for a sharp rally. At press time, BNB is trading at $624.51 following a slight drop of 0.98% over the past 24 hours.
Currently just 12.19% below its all-time high of $720.67 set in June 2024, this breakout raises the question: Can BNB sustain this momentum and reach its mid-term target of $725?
Is there further upside potential?
Chart analysis of the altcoin shows that a strong bullish pennant breakout suggests a possible upside trajectory. The breakout appears to have pushed BNB above a crucial descending trendline, setting the stage for an ambitious price target of $725 over the medium term.
If BNB maintains this momentum and achieves its target, it will establish a solid bullish foundation for further gains with a long-term target of $1,000.
However, the key level around $640 may still pose some challenges in the short term, while the support at $600 could provide a cushion in case of a minor pullback.
Technical indicators strengthen BNB’s outlook
Several technical indicators reinforce the bullish case for BNB. The relative strength index (RSI) hovers around 58.08, indicating favorable growth conditions and no overbought risks.
Moreover, the recent moving average (MA) crossover between the 9-day EMA and the 21-day EMA at around $618 is another strong bullish sign – indicating continued price momentum. Therefore, the combination of the positive RSI and MA crossover aligns well with the pennant breakout, increasing the likelihood that BNB will achieve its target.
Growing interest in BNB
Derivatives data further highlighted its bullish potential. Trading volume surged 50.40% to $2.95 billion, while open interest increased 7.10% to a total of $787.18 million.
Additionally, options volume rose 47.00% and options open interest rose 62.49%. These increases suggest growing confidence among traders who may be positioning for a potential rally that could be driven by a recent technical breakout.
Despite positive outlook, BNB’s social dominance declines
Interestingly, its social dominance dropped from 0.562% to 0.435%, indicating a decline in social media attention. While technical indicators and derivatives data remain strong, this drop may reflect waning interest from retail traders.
However, this shift could also mean that there is room for BNB to regain interest, especially if it reaches its target of $725 and builds momentum.
BNB is expected to reach $725 or even higher
With a confirmed bullish breakout, positive technical indicators, and increasing derivatives activity, BNB appears set to reach its medium-term target of $725 at press time.
Reaching this level could further strengthen its bullish outlook and set the stage for a long-term rally. In short, as long as BNB maintains momentum and re-engages retail interest, it could be ready for fresh gains.
