Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
While most altcoins saw a mixed day of trading, Binance Coin welcomed the market’s bulls. Spurred on by the announcement of a $1 billion fund to enhance the Binance Smart Chain, BNB surged by 11% – One of the highest percentage gains over the last 24 hours.
On the charts, BNB had smashed past a rigid barrier and was setting its sights on its late-August high of $520.
Binance Coin 4-hour Chart
A rebound from the 200-SMA (green) allowed BNB to push above the key resistance zone of $437 and go past its previous October high. The aforementioned resistance has had five points of contact since mid-August and has proven to be a tough nut to crack.
Now that BNB has gained a foothold above this level, the 78.6% and 100% Fibonacci levels can be tackled going forward.
According to the Visible Range, there is not an abundance of supply for BNB till the 78.6% Fibonacci level. The presence of weak resistance barriers could see BNB flip this region over the next 24 hours.
However, some selling pressure seemed to be available above the $480-mark. Momentum would need to be constant if BNB does challenge its 100% Fibonacci level.
The Relative Strength Index made room for more growth after stabilizing from its overbought levels. The next move forward can be anticipated once the RSI finds support at 50-55 and inches higher on the chart.
The Squeeze Momentum Indicator flashed a buy signal after noting a series of green bars within a ‘squeeze release.’ Finally, the Directional Movement Index’s nature can also be expected to attract more buying pressure as the +DI traded above the -DI.
BNB can be expected to overtake the 78.6% Fibonacci Retracement level after a rebound from the $437-support. However, its journey from $480-$520 could be arduous, considering the presence of some supply zones.
Since BNB is yet to reverse direction, traders must be cautious of a minor retracement as well. Hence, a wait and watch strategy would be better than longing BNB at the $437-level.