Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Binance Coin has actually made a commendable run until now. The last week resulted in the formation of an up-channel and even though a breakdown was threatened on a few occasions, buyers responded adequately at the lower trendline.
This places BNB back in a positive setting, with temporary market energy on the favorable side. The next area of interest will be found around $530-$540 in a best-case outcome.
At the moment of composing, BNB was trading at $493.8 as well as held the 4th setting on CMC’s crypto-rankings.
Binance Coin 4-hour Chart
BNB’s uptrend has not faltered since late-July. Higher highs and higher lows formed at regular periods and while 17 August’s double top did pose a few risks, buyers hit back at $390-support to preserve BNB’s trajectory. The alt’s rate has actually relocated within an up-channel given that as well as the reduced trendlines set off some small rallies over the previous week.
This could be the case once again as BNB finds support at the base trendline and targets the $540-level. Momentum likewise agreed the purchasers as the rate relocated over its 20 (red) as well as 50 (yellow) SMA’s. In case of an unprecedented price reversal, support found anywhere above $440 would be beneficial over the long run.
Reasoning
The Relative Strength Index pointed north from 62 and indicated some more upside potential before touching the overbought zone. The Directional Movement Index’s +DI stayed clear of a bearish crossover as well as considered a greater optimal moving forward. This would put buyers back on top after the decline noted from $515 to $460.
Finally, the MACD’s greater highs verified BNB’s rate activity. However, a bullish crossover is needed to safeguard this trend.
Conclusion
BNB’s rate looked established for a turnaround at the reduced trendline of its up-channel. A resistance area in between $530-$ 540 would certainly be BNB’s following location if the energy proceeds to side with the purchasers. If a breakdown is threatened, support should be found above $440 to prevent short-sellers from initiating more drawdowns.
Although traders may have lost out on the excellent buy entrance at the reduced trendline, longing BNB at its press time level would still provide some gains.
