Growing on-chain activity to push BNB to all time highs

Binance Coin (BNB) is on the verge of a potential breakout to a new all-time high, driven by growing on-chain activity, a recent price surge, and the resolution of ex-CEO Changpeng Zhao’s legal issues. The token has been trading within an ascending triangle pattern since May 16, with a bullish bias and a potential breakout towards a new all-time high above $692.

Technical analysis of BNB’s price action reveals that the token has been trading within an ascending triangle formation since May 16. This pattern, characterized by four higher lows and four roughly equal highs, has a bullish bias and suggests a potential rally to $760, with the coin price currently trading at $624 with a market cap of $92.1 billion.

On-chain data supports the bullish outlook for BNB, with the number of BEP-20 tokens transferred daily increasing by 56% from May 19 to June 3, indicating growing traction and usage of the BNB network. The BNB Smart Chain unique addresses metric has consistently increased by an average of 150,000 daily, signaling greater usage and an influx of new capital into the network.

The recent commencement of ex-CEO Changpeng Zhao’s four-month jail term has also contributed to the bullish sentiment surrounding BNB. CZ reported to Lompoc II, a federal prison in California, on Monday after being sentenced for failing to establish robust anti-money laundering policies while serving as head of Binance.

Following the news of CZ’s jail term, BNB’s price rallied nearly 6%, accompanied by a 24% spike in open interest. This increase in open interest, representing the total number of outstanding derivative contracts yet to be settled, indicates heightened investor attention and potential for further price growth.

BNB’s recent breakout from a symmetrical triangle pattern signals the end of the ongoing correction trend, and the potential recovery in BNB could witness dynamic support from the midline of Bollinger Band indicators. Investors should remain cautious, as a daily candlestick close below $500 would invalidate the bullish thesis and potentially lead to a 9% crash to the 50% Fibonacci retracement support level at $454. If the price fails to sustain above the breached trendline, the bullish thesis will be invalidated, and BNB could prolong its consolidation for several more weeks or months.