Disclaimer: The findings in the following analysis are the sole opinions of the author and should not be taken as investment advice.
Binance Coin has had a respectable career so far. The last week resulted in the formation of an ascending channel and although a breakout was threatened at times, buyers responded adequately at the lower trend line.
This puts BNB back in a favorable position, with short-term market momentum on the bullish side. The next area of interest will be between $ 530 and $ 540 at best.
At the time of this writing, BNB was trading at $ 493.8 and ranked fourth in CMC’s crypto rankings.
Binance Coin 4-hour chart
BNB’s uptrend has not wavered since late July. Higher highs and lows formed in regular periods and while the double top on August 17 posed some risks, buyers responded to the $ 390 support to preserve BNB’s trajectory. The alt price has moved within an ascending channel since then and lower trend lines triggered some minor rallies over the past week.
This could be the case once again as BNB finds support at the baseline trend line and targets the $ 540 level. Momentum also sided with buyers as the price moved above its 20s (red) and 50 (yellow) SMA. In the event of an unprecedented price reversal, support anywhere above $ 440 would be beneficial in the long run.
The Relative Strength Index headed north from 62 and indicated further upside potential before hitting the overbought zone. The + DI of the Directional Movement Index avoided a bearish crossover and saw a higher spike in the future. This would put buyers back on top after the decline from $ 515 to $ 460.
Finally, the higher highs of the MACD confirmed BNB’s price action. However, a bullish crossover is needed to safeguard this trend.
BNB price seemed poised for a reversal at the lower trend line of its ascending channel. A resistance zone between $ 530 and $ 540 would be BNB’s next destination if the momentum continues on the buyers side. If a breakout is threatened, support should be above $ 440 to prevent short sellers from initiating further drawdowns.
Although traders might have missed the ideal buy entry at the lower trend line, yearning for BNB at its closing level would still provide some gains.
This is a machine translation of our English version.
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