Binance Coin has seen its price action trend mostly sideways in the past week despite the correction the altcoin market underwent. The past 7-days saw BNB traded within the strong confines of its resistance and support and a north-bound breakout doesn’t seem likely in the coming days.
At the time of writing, BNB was trading at $487.1 and registered a market capitalization of $74.8 billion making it the third-largest cryptocurrency. BNB also saw a slight price correction amounting to over 5.6 percent in the past day’s time and the bearishness is likely to continue.
Binance Coin 1-day chart
Source: BNB/USD, TradingView
As per the past week’s price action, traders can expect the price to remain fairly rangebound in the coming week. This is going to keep the price movement between BNB’s resistance at $581 and support at $464. If this support is breached, then the next support level for BNB is all the way down at $306, however, such a drastic dip isn’t very likely in the coming week.
However, given the fact that BNB is now in a consolidation phase, it is hard to determine whether a short or a long position would be best suited in the coming week.
Rationale
Technical indicators like the MACD indicator paint a bearish picture for the coin in the coming week. The signal line has gone over the MACD line and formed a bearish crossover with signs of a reversal quite slim in the coming week.
The RSI indicator on the other hand is near the neutral zone and if it doesn’t fall further, BNB may see its rangebound movement continue.
Conclusion
Binance Coin’s price has been largely rangebound in the past week and this is likely to continue in the coming days. There is a strong support that has helped the coin bounce back in the past and it is likely to play a key role this week. If the coin were to drop down all the way to around $300, intense bearish pressure would be required and such a steep correction doesn’t seem likely for BNB in the coming week.
