Over the weekend, Bancor (BNT) price increased by over 70 percent. However, it could not continue its rise today. BNT has fallen below the horizontal resistance area at $0.62, which has been in place since March. Crypto analyst Valdrin Tahiri says further rises are possible for the altcoin.
Bancor reaches long-term resistance
Daily time frame technical analysis shows that BNT price has been trading below the $0.62 horizontal resistance area since March 2023. BNT has confirmed the area many times (red icons) and finally touched today. The altcoin broke above the zone several times. However, it failed to reach the daily close and instead formed long upper wicks. These wicks are bearish signals that indicate significant selling pressure preventing Bancor price from confirming its breakout above $0.62.
Since June, BNT price has also increased alongside a rising support line. The altcoin bounced along this line, rising 52% on October 8. The increase reached over 70% at one point. However, those above the long upper wick eliminated some of the upside. BNT price is now trading below the $0.62 area again.
BNT Daily Chart. Source: TradingViewDaily trading volume also increased significantly during these two peaks on August 9 and October 8. The increase on October 8 is particularly significant. Because the 797 BNT address was active and was the most active for about two years. Additionally, 157 new BNT addresses were created on the same day. Another interesting development is cryptokoin.com As you follow from , a wallet suspected to belong to the Upbit exchange has accumulated 4.71 million BNT tokens in the last 11 hours. This amounts to a staggering 3.3% of the total altcoin supply.
BNT price prediction: Is this just the beginning for the altcoin?
Technical analysis of the weekly chart suggests that the increase could be the beginning of a long-term uptrend reversal. The main reason for this is that BNT price broke out of the 940-day descending resistance trend line last week. Breakouts from such long-term trend lines often lead to significant increases. The breakout took BNT inside the $0.60 resistance area.
Another reason for the bullish outlook comes from the RSI. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell an asset. Data above 50 and an upward trend indicates that the bulls still have the advantage. On the contrary, data below 50 indicate the opposite. The indicator is currently above 50 and rising. Therefore, both indicate a bullish altcoin price trend. Moreover, the RSI formed a bullish divergence between July and December 2022. A bullish divergence occurs when a momentum increase follows a price decline. It often leads to significant upward movements. If BNT rises above $0.62, a 400% increase is possible. Thus, it is likely to reach the next resistance at $3.20.
BNT Weekly Chart. Source: TradingViewDespite this bullish BNT price prediction, a failure to close above the $0.62 area could lead to a 40% drop to the descending resistance trend line at $0.40
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