Disclaimer: The findings of the following article are the sole opinions of the writer and should not be taken as investment advice
Binance Coin, at the time of writing, was registering a minor spike after re-discovering its position above $29, following a dip below $26. On the back of an uptrend, BNB surged over the course of three days, but analysis suggested that the local top could be a little over its press time price.
Binance Coin, at the time of writing, had a market cap of $4.18 billion, with the cryptocurrency ranked within the top-10 on CoinMarketCap.
Binance Coin 1-hour chart
Source: BNB/USD on TradingView
While Binance Coin might have been on an uptrend, its price has been moving within the trendlines of a descending channel since the start of December. While the pattern carries bullish implications, it registered its 2nd lower high at press time, hence, the possibility of moving a little down before the eventual breakout seemed more.
A positive sign registered by the price was the move above the 50-Moving Average, at press time. With the press time support at $26, it was unlikely to drop heavily over the next few days. Further, the drop in trading volume seemed a little uncharacteristic for Binance Coin since it remains heavily active on Binance’s platform.
Market Reasoning
Source: BNB/USD on Trading View
Now, with respect to market indicators, the Stochastic RSI was indicative of an immediate drop. At the time of writing, selling pressure was taking shape in the market, a development that seemed likely to be temporary. Further, the Relative Strength Index or RSI pointed to a similar trend as well, with the buyers observed to have slowed down a little on the price charts.
Finally, the Awesome Oscillator did not exhibit outright bullish/bearish momentum, with the indicator pointing to a neutral trend, at press time.
Important Range
Resistance: $28, $30
Support: $26
Minor Long-Position entry point: $28
Take Profit: $30 and above
Stop Loss: $26
Risk/Reward Ratio: 1.33x
Conclusion
Binance Coin, at press time, was finding a moment of rest in the market, but a re-test of the $30-level seemed like a possible scenario over the coming week. While corrections will ensure thereafter, Binance Coin might soon be consolidating at a higher range.
