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BNB Coin Shows Recovery Signs: New Yearly High on Sight

2 mins
Updated by Ali Martinez
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In Brief

  • BNB price bounced back from $550 to inch closer to breaching $593 resistance.
  • The price indicators have regained the bullish momentum, which supports an 8% rise.
  • Sharpe Ratio at 4.03 will likely drive new investors towards the exchange token.
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March was a favorable month for BNB Coin, with the cryptocurrency achieving two new highs for the year within just a few days before experiencing a correction.

After a nearly two-week period of recovery, BNB Coin is showing signs of potentially reaching a new high in 2024. But is such a milestone achievable?

BNB Looks Promising

Following a rebound from the $550 support level, the value of BNB Coin has risen to $581 at the time of this analysis. This improvement reflects a recovery in the altcoin’s risk-return profile, which had been in a downtrend for several weeks.

The Sharpe Ratio, a metric used to assess the risk-adjusted return of an investment by comparing its average return against its volatility, has recently shown an uptick toward 4.0 for BNB. This increase suggests that BNB’s risk-adjusted returns are sufficiently attractive to draw new investors to the asset potentially.

BNB Sharpe Ratio.
BNB Sharpe Ratio. Source: Messari

Moreover, the Relative Strength Index (RSI) for BNB has re-entered the bullish territory. The RSI is a momentum oscillator that measures the velocity and magnitude of price movements, helping to identify overbought or oversold conditions.

BNB RSI.
BNB RSI. Source: TradingView

Given that the RSI is well below the overbought level yet above the midpoint, there is an indication that BNB’s bullish momentum may be rekindled.

BNB Price Prediction: New Highs

BNB is approaching the $593 resistance mark, surpassing this level could propel the cryptocurrency beyond $600. Should the conditions discussed hold true, BNB will likely experience a surge, potentially reaching $632, setting new highs for the year.

Read More: How To Buy BNB and Everything You Need To Know

BNB Price Chart
BNB Price Chart. Source: TradingView

However, the $593 level has historically been a significant resistance point on the 4-hour chart. Should BNB fail to overcome this barrier, a correction back to $549 could be in the cards.

A drop below this support level would negate the bullish forecast, leading to a further downturn.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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