Amidst a bearish cryptocurrency market, Bitget Token (BGB) has stood out by surging over 100% in the last 30 days. This growth comes in the backdrop of Bitcoin's price drop and BTC's market dominance.
Key Factors Behind BGB's Rally
BGB's price rally can be credited to significant developments that have bolstered investor confidence. Bitget secured approval from El Salvador's Central Reserve Bank to operate as a Bitcoin Service Provider, enabling fiat-to-Bitcoin exchanges and custody services. In addition, Bitget executed a burn of 800 million BGB tokens, reducing its total supply by 40%, creating scarcity and driving the token's value upwards.
Can This Breakout Fuel Further Gains?
In the last 24 hours, BGB has risen by over 5% after breaking out from a key resistance zone at $6.72, reaching $6.94. Before this, BGB also cleared a descending trendline resistance at $6.30. Previous similar breakouts have led to significant rallies in BGB. If this pattern follows, the token could approach its all-time high of $8.50, representing a potential 27% upside from the breakout point at $4.70.
Technical Indicators Support the Bullish Momentum
The MACD (Moving Average Convergence Divergence) indicator shows a bullish momentum with the MACD line crossing above the signal line, a positive sign of continued upward price action. The RSI (Relative Strength Index) stands at 75.22, indicating strong buying momentum. Although approaching overbought territory, it shows buyers remain in control.
BGB's impressive rally, coupled with its key technical breakout, positions it as one of the best-performing assets in the market. If Bitcoin manages to maintain its support between $91K and $94K, it could stabilize the market and support further altcoin gains like BGB.