Binance Coin (BNB) has faced some stagnation in price action over the past week. The coin has traded broadly sideways, but there is still potential for upside should it break through two crucial resistance zones. Here’s what you need to know:
- Binance coin offers significant upside potential with this setup.
- The coin must smash past $336 and then $358 before any run towards $450
- At the moment, it doesn’t seem like there is enough momentum for this
BNB and the road to $450
Reaching $450 in the short term will be a huge thing for BNB bulls. The piece has, after all, been deleted for weeks now. There was even a small window where it fell below the $300 mark. However, it looks like there is a path to $450, but two major hurdles need to be overcome.
The first one is the $336 resistance zone. At the moment, BNB is around 10% away from this. If we see more robust positive action in the market tomorrow, then the coin will likely close the week above $336. Despite this, the next resistance will be the most important one. BNB will need to find enough momentum to reclaim $358 and consolidate there.
We don’t think the coin has enough upward momentum to hit $358. Instead, it will likely test $336 before falling back towards $310. There is also downside potential to note. If indeed the price continues to move sideways and fails to make a decisive run towards $336, BNB could possibly drop to $286.
The trading strategy for this setup
Well, the first thing to do would be to assess price momentum in the next two days. If BNB remains to stagnate between $308 and 318, then don’t buy.
However, if there is a clear break above $320, the coin is likely to reach $336. After $336, downside risks increase exponentially, so best to get out early.
