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Binance Coin (BNB) looks poised to leave a prolonged downtrend based on signals from the popular charting indicator, the Bollinger Bands. Some analysts and even enthusiasts think that BNB could soon get back to the $1,000 mark.
Bollinger Bands signal the potential price reversal of Binance Coin
BNB entered a short-term bear phase in early November, dropping about 22% from its October high of $1,370.55.
At press time, the BNB price was standing around $914. This marks a test of psychological support near $900-$920, amid broader crypto market weakness.
However, the Binance Coin price could bounce back soon based on the Bollinger Bands signal. As seen on a TradingView chart, the BNB price has dropped below the lower Bollinger Band, with the middle band acting as a rebound target.
The chart shows a clear trend from $1,020 to a low around $914.48, with a series of red candles dominating. However, the last candles are smaller with lower wicks, suggesting that sellers are exhausting near the lows. However, buyers did not intervene aggressively.
As seen on the chart, the BNB price is very close to the lower Bollinger Band. In addition, the bands are moderately expanded, indicating high volatility since the fall of 5.6% in the last 24 hours.
Can BNB claim $1,000?
U BNB price it could rebound between $1,050-$1,100 if the lower band touch extends to a positive daily close. Such a move could mark the end of the bear market, especially if strong buying pressure continues.
Bands widen from earlier squeezes, often preceding reversals. Historical data of BNB showed that lower Bollinger Band touches led to rallies in previous cycles.
Meanwhile, the Relative Strength Index (RSI) is currently at 38.61, from earlier highs. As the index approaches oversold territory, it remains neutral, with the line still showing a downward slope.
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No divergence is visible as the momentum is bearish but not extreme. In particular, RSI at 38.61 is low enough to discourage further selling.
In addition, The growth of the Binance ecosystem and stabilization of the price of Bitcoin (BTC) could amplify the upside potential for BNB.
One of the latest developments in the ecosystem is the introduction of the Fermi hard fork on the BNB chain. The Fermi hard fork will drop the block interval by 40% from 750ms to 450ms. This move is expected to increase transaction efficiency, throughput and overall network performance.
