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BNB has forced a breakout at $278
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BNB Chain announced the zkBNB testnet on Wednesday
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The cryptocurrency is a buy with a potential surge to $326
Bullish breakouts are important price action cues. They suggest an increase in buying, forcing the price to pierce through supply zones. That is exactly what is happening to the Binance coin BNB/USD.
BNB trades at $295 as of press time. It becomes interesting when we look at the trading volumes, which show a jump of 18.49% in 24 hours. The price had gained by 6.34%. This comes barely two days after BNB Chain announced a major breakthrough in its scaling solution.
On Wednesday, Binance said it was addressing its scaling issues through the zkBNB testnet. The testnet is expected to support 100 million addresses. The transactions per second are expected to be 10,000 on the testnet. Since the launch, BNB has gathered momentum and breached a key level.
BNB inside bar breakout is underway as moving averages join support
Source – TradingView
On the daily chart, a breakout candlestick from an inside bar can be seen towering above the $278 support. Following the breakout, the 20-day moving average has joined the support for the first time since mid-August. BNB also looks set to reclaim back the support of the 50-day MA.
With the next resistance at $326, BNB has a lot of room to move. The positive developments and crypto recoveries will boost the token back to the resistance zone. BNB is a buy on the breakout. However, investors should take advantage of a potential retracement once the price hits $300.
Summary
Binance coin is bullish and eyes $326 again. A bullish breakout from an insider bar setup at the $278 support makes a bullish case strong. $300 could offer some minor resistance forcing a short-term retracement. BNB is a buy at the current or lower level.