The cryptocurrency market has been taking a breather amid this highly volatile phase. Binance Coin [BNB]’s price has also been forming ebbs and flows, which has been igniting more volatility in the market.
The mid-term chart of the digital asset has been noting that the price formed a large rising curve with the growing price but has now been seeing the tail end of the crashing wave. As the remaining market drops, the price of BNB has also slumped to $524, at the time of writing but its market capitalization was holding strong at $80.73 billion.
Binance Coin four-hour chart
After losing the support at $611, the price of BNB collapsed through various levels of support. As it managed to bounce back from $482, the asset’s price was currently holding on to a level above $500.
As the price approached resistance at $540, BNB could see a trend reversal.
The high volatility in the BNB market has not been hidden. This was a result of the pumps and dumps across the Bitcoin and Ethereum markets. However, as the two largest crypto markets stabilized, BNB is also approaching a stable period. Bollinger Bands had opened up for more volatility after the recent fall and remained wide apart, suggesting the market may continue to see wild price movement.
However, relative strength index was suggesting a rising buying pressure. RSI had dropped to 30- the oversold zone- when the price crumbled, however, with recovery, buyers have entered the market. The low price and high return potential of BNB may have sparked buyers’ enthusiasm. This recent push from the buyers has maintained the flow of money within the market as highlighted by Chaikin Money Flow.
BNB is poised to witness a bullish change in the trend and this could result in its price testing immediate resistance.
Take Profit: $565.59
Risk to Reward: 2.82
The current BNB market has been undergoing a transitional phase. A new bullish wave might be entering the market as the price recovered to $524. With the buying pressure rising and the money remaining within the market, BNB could move towards $540 shortly.