Binance Coin (BNB) price has been trying to bounce back at a vital support zone that could mark a turning point for a price movement.
If the bulls can defend this support line, a massive increase in the BNB price could be on the tip of the spear.
The critical support levels, current technical indicators, and chart patterns also show a possibility of a significant upward move, as revealed by.
Support Level Test: A Crucial Moment for BNB Coin Price
Recently, BNB has bounced off a significant trendline, which acted as a key support level at press time. This level was tested by the price at around $605.
However, despite holding its position above this point for several hours, the coin has now slipped back to $601.
If BNB bulls are still in control, the potential move could be higher. However, Binance Coin has to maintain its position above this support level to make that potential move.
$605 is a significant support level because it has played this role in the past. Charts show a recent bounce off this zone. That’s a sign of strength, as the price did not break through the support but stabilized.
A clean bounce from this level will show that buyers are stepping in at a crucial point. It could be the start of a potential rally.
BNB 3-hour Chart | Source: Iko | Web3 on X
Additionally, the first chart’s trendline shows that BNB has moved conveniently downward for a while. This particular support level could be the underside of this downtrend.
BNB price could start moving up and break the downward trendline. Thus, it could mark the end of the current consolidation phase.
Technical Indicators Show a Clean Bounce Coming Ahead
When writing, BNB price was on the edge of a breakout according to technical indicators on 3-hour charts. However, it relied on whether the support at $605 will hold.
A clean bounce from this zone could verify the buyer’s control of the market and the strength of the support region to push BNB as high as possible.
The 3-hour charts showed a double bottom formation. The appearance of this pattern in the BNB chart substantiated the case for a move upward.
It could have created two distinct lows very close to each other and formed a double bottom if the price had decreased. It could have triggered a possible rally if it had broken above the resistance level.
The first bottom was in the vicinity of the $590 mark, while the second bottom was generally measured in the vicinity of the $605 mark. Since the second bottom, the price had started to rise. That indicated bulls were coming in to push the price further.
This double bottom formation has a price target of $780, an upside of over 400% from current prices.
The RSI Also Indicated an Upward Movement
The Stochastic RSI was also in bullish momentum at the time of writing. It also backed an upward movement, suggesting that buying pressure was building and pulling it from oversold territory.
However, the Stochastic RSI did not reach overbought levels, making way for further upside. A bounce from support could indicate that a clean bounce for BNB price is underway for a major rally.
1-day BNB/USD Chart | Source: TradingView
Breaking below the support at $620 and going up would imply that the resistance can be broken at $620. Overall sentiment in the market would be bullish. It will require the price to reach the target of $780. In addition to that, the bottom has the Stochastic RSI rising strongly.
This scenario indicated a bullish sentiment for BNB price. The oscillator crept higher toward the more neutral territory, meaning things were moving now.
The momentum had increased, with the break above resistance. It could put a lot of momentum into a strong rally to the next price targets.
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