A $300-bound relief rally in Binance Coin price takes a breather, but for how long?

Binance Coin price appears to be moving in tandem with the rest of the cryptocurrency market. Most of its peers, including Ethereum (ETH), Cardano (ADA) and Solana (SOL), flipped green with double-digit gains. The native exchange token now trades at $289 while bulls struggle with dispersing significant seller congestion at $290.

Assessing the possibility of Binance Coin price tagging $300

The BNB price breakout to $290 comes after a rising triangle validated a breakout on the four-hour chart. This bullish pattern is characterized by the price moving within a tight range, depicting a heated tussle between bulls and bears.

A properly formed triangle would require the price to touch its support and resistance at least five times. A bullish outcome is expected when buying pressure outweighs selling pressure at the resistance level (x-axis).

In the case of BNB, trading above the horizontal resistance at $276, validated a 5.08% move to $290 – calculated by extrapolating the distance between the widest points of the triangle up from the breakout point.

BNB/USD four-hour chart

Despite the sluggishness being experienced at $290, Binance Coin price is largely in the bulls’ hands. The MACD (Moving Average Convergence Divergence) indicator adds credence to its bullish outlook as it snakes above the mean line (0.00). Stubbornly bullish traders must wait for an established break above $290 before going all-in with long positions bound for $300.

Binance Coin price saw a 105% positive change in its trading volume as retail investors circled back into the market. Meanwhile, on-chain data by Santiment shows a massive spike in the number of previously dormant BNB tokens.

The Age Consumed metric tracks the movement of previously idle tokens. It does so by multiplying the amount of BNB tokens changing addresses daily multiplied by the days since they last moved. Spikes in this on-chain model show a large sum of previously dormant tokens is on the move, which eventually translates to heightened volatility.

Binance Coin Age Consumed

Although the Age Consumed metric can pinpoint incoming volatility, it does not determine the direction in which BNB price will move. Therefore, traders and investors must rely on other indicators to make the best decisions.

If gains above $290 turn out to be a daunting task for bulls, a retracement will not appear farfetched. Hence, traders should lock in profits as the price recovers because new entry positions tend to open up as Binance Coin price hunts for support.