Connect with us
Active Currencies 14908
Market Cap $2,564,694,210,323.30
Bitcoin Share 51.98%
24h Market Cap Change $-1.41

Assessing the odds of Binance Coin climbing to $510 again

2min Read

Share this article

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Bitcoin appeared to have found some temporary support in the $40.5k region and bounced to $42.6k, at the time of writing. Binance Coin also found demand in the $413-$417 region and recorded a gain of nearly 10.6% over a period of 40 hours since.

The $480-$486 zone will be the next area of resistance for Binance Coin.

Source: BNB/USDT on TradingView

$417 was a long-term support level for BNB, while the $413 level represented 61.8% retracement for BNB’s move from $254 to $669. On lower timeframes, the $455 area (cyan box) is a place where sellers have been strong and have been able to force a quick move from $455 to $415.

Over the last few hours, Binance Coin has been able to rise above the $455 supply region, shifting the short-term outlook for Binance Coin from bearish to bullish.

In the scenario that BNB does not see a candle close below $450, it remains likely that the price would resume its march upward. The $480 and $486-levels presented short-term targets for the price.

The entire area from $470-$510 did not see much trading activity on BNB’s slide down, meaning sellers were abundantly stronger. Only the $461-level could force a bounce. Hence, it is possible that BNB would quickly climb to $510 if it can rise above $470 on strong volume.

Rationale

Source: BNB/USDT on TradingView

When BNB tested $413 for the second time in the past week, the MACD formed a higher low while the price closed at a lower low. This bullish divergence was followed by the MACD forming a bullish crossover and climbing rapidly above the zero line.

The CMF indicator also showed capital flows into the market.

Conclusion

Trading volume was high when BNB surged north and that would need to be the case once more if BNB breaches the $470-level. Short-term momentum is on the side of the bulls and a former zone of supply at $455 appeared to be flipped to demand.

This offered a buy opportunity and a high risk-to-reward trade considering how thin the $470-$510 area has been in terms of trading volume on the way down.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.