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. 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. 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
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.
Read the full article here
