Over the past 4 days, Binance Coin has consistently tested a support range between $275 and $285 on the daily chart. While other major assets have indicated a higher wick on each day going forward (besides XRP), the correction levels for BNB have been similar. While it may solidify the bottom, it could also lead to a new low. At press time Binance Coin was the 5th largest cryptocurrency with a market cap of ~$50 billion.
Binance Coin 1-hour chart
BNB/USDT on Trading View
As witnessed on the 4-hour chart, BNB capitulated near the bottom at $285-$275 four times in the past 4 days. In a span of 16-days, it has re-tested support twice, which indicates two possibilities: stronger support to rebound from, or weak support currently sustaining the price.
One bullish indicator which may suggest the bottom is the Relative Strength Index. Testing the over-sold zone of a couple of occasions, buying pressure should be able to retain more momentum in the coming days. The price pump may trigger due to the active volumes, which indicates the presence of traders in BNB’s market.
Market Rational
BNB/USDT on Trading View
Market Indicators were more on the neutral side. Awesome Oscillator suggested a dominant bearish momentum but bullishness could be evident over the next few days.
Stochastic RSI is currently indicative of a bullish crossover. MACD indicator also suggested a minor bearish crossover at press time, which could be invalidated with a bullish crossover, as the MACD line maintained closed proximity to the signal line.
Conclusion
Setting up a definitive long or short order is risky, as price may consolidate between support of $285 and $350 going forward. However, a positional confirmation above $350 would allow BNB to test $403 since buying pressure would gain market momentum.
