New altcoins crash and burn, but this altcoin shows strength

• Binance Coin price shows a bullish pennant continuation pattern.
• BNB could range between the $600 to $526 levels until the skies clear out for Bitcoin.
• The altcoin could see a massive gain with the upcoming BEP-336 upgrade.

The altcoins that debuted in late 2023 or early 2024 saw impressive performance as they rallied higher. But at the time of writing, some of these tokens plunged by 20%, 30%, 40%, and even more in the past three to five weeks. Binance Coin (BNB), however, has shown resilience despite the recent market turmoil.

Also read: BNB price eyes $400 as Binance Coin bulls keep showing up

Altcoin market in shambles

Here are a few examples of how altcoins have performed in the past few weeks.

• Dogwifhat (WIF) is down 50% from its all-time high (ATH) of $4.87 in the last four weeks.
• Jito (JTO) has shed 54% from its local top of $5.32 in the last three weeks.
• Heroes of Mavia (MAVIA) has crashed 73% in the past nine weeks from its ATH of $10.94.

Binance coin price shows more strength as it hovers around $544 after shedding 15% in the past five weeks. This move comes after BNB set up its local top of $646 on March 16 and is currently setting up lower highs and higher lows, suggesting a consolidation.

Connecting the swing highs and swing lows using trend lines shows a pennant formation after a 63% rally between March 6 and 16, showing a continuation pattern known as bullish pennant. As the name indicates, a breakout above the pennant is a confirmation of the resumption of the uptrend.

The target for this technical formation is obtained by adding the length of the 63% rally, also known as the flag pole, to the breakout point. This forecasting method reveals a target of $973, which seems absurdly high. Investors need to note that this is a theoretical forecasting method.

Judging based on the price levels, the $660 is the next key hurdle for BNB to tag and overcome. Beyond this, Binance Coin price could attempt to overcome the previous ATH of $692 and set up a new one at $700 or higher.

BNB/USDT 1-day chart

While the theoretical forecasting methods suggest a bullish outlook for Binance Coin price, the Relative Strength Index (RSI) and Awesome Oscillator (AO) are not. Both momentum indicators are slipping below their respective mean levels of 50 and 0, indicating a shift in momentum favoring bears.

It is unlikely that BNB undergoes a directional move when Bitcoin is moving sideways. Instead, it could consolidate between the $660 and $526 levels.

Also read: Binance Coin Price Prediction: BNB nurtures a V-shaped recovery with 10% gains in sight

Other factors affecting BNB’s moves

While the price action shows that there is a clear demand for Binance Coin, the reason behind it could be the upcoming major upgrade – Tycho hard fork. The BNB Smart Chain (BSC) ecosystem is scheduled to take place on the testnet on April 17. If the testnet run is successful, the mainnet implementation of the Tycho upgrade will take place around mid-June.

The aforementioned update will support Blob Transactions, a game-changer for Layer 2 (L2) rollups. This development will be a major step towards reducing operational expenses within the ecosystem. The blob transactions are modeled after Ethereum’s Dencun upgrade (EIP 4844).

A successful implementation of this upgrade will help significantly reduce the fees for Binance Smart Chain users. So, it is typical for the underlying asset of BSC to rally before this upgrade.

Share: Cryptos feed

Source