BNB breaks key trendline, showing relative strength

As one of the top performers of the day and currently showing one of the cleanest structures in the altcoin market, BNB stands out and is worth taking a closer look at.

Starting with the daily timeframe, we can clearly see a structural shift with BNB breaking above a long-term descending trendline. A parallel channel has been used to mark this trend area, creating a more dynamic visual buffer zone around the trendline. On 8 May, BNB broke above this channel and subsequently formed a bull flag pattern, which was then broken to the upside again on 21 May. Since then, we’ve seen the formation of higher highs and higher lows, giving BNB a distinct bullish structure compared to many other altcoins currently in corrective or sideways trends.

Dropping down into the 1-hour timeframe, BNB recently broke above the key 677 level and is now trading just beneath a local resistance zone. The momentum behind this move appears strong, with two hourly candles now closing above the breakout level. There was a volume spike on the breakout, confirming initial strength, but it’s worth noting that the volume was not significantly higher than previous tests of this level. For greater conviction, we would ideally want to see another spike in volume that surpasses the previous peaks.

Using the Fibonacci retracement tool from the low of this current breakout move to the midpoint of the resistance area, we find the 50% fib aligning closely with the 677 level. This level also aligns with both the 20 and 50 EMA on the 1-hour chart. If price retraces from the current resistance area, this is the zone we will be watching for a potential bounce. A strong reaction here could confirm the breakout and suggest continuation to the upside.

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