By Lucas Williams
Binance Coin flipped 2-month trend-line resistance to support as the alt market displayed a momentum shift to buyers. BNB has stayed range-bound inside the shackles of its reversal setup for more than one month.
Buyers maintained control of near-term actions as the price jumped the Bollinger Bands’ basis line. A sustained spot beyond the basis line might aid buyers to annul possible bearish inclinations. While publishing this content, BNB traded at $269.6, surging 5.59% within the previous 24 hours.
Binance Coin Daily Timeframe
BNB witnessed a selling pressure splurge after losing the $320 – $326 value area early in May, extending its southbound tendencies. Consequently, it hit 16-month lows on June 18. Since then, Binance Coin has explored an upward channel on the daily chart.
A near-term drawdown might emerge should the setup catalyze any reversals. Bearishness would open the path for the altcoin to test the upward channel’s lower trend line. A decline beneath this level might welcome a retest to the $216 – $219 value area.
Beas should ensure a closing beneath the Bollinger Bands’ basis line to confirm the highlighted outcome. Rebounds from the BB’s basis line might catalyze a prolonged upward channel trajectory. Should buyers exert more pressure, the altcoin would target a closing beyond the 38.2% FIB resistance within the upcoming sessions. A compelling close past the $271 mark would heighten the possibility of upticks towards the 50% FIB level.
Reasoning
The daily RSI (Relative Strength Index) displayed a brief bullish edge as it reversed from a trend-line resistance. This development has confirmed a bearish divergence with the BNB price. Similarly, the OBV’s lower highs highlighted bearish divergences at this timeframe. Nevertheless, the ADX flashed a significantly weak directional bias for Binance Coin.
Final Thought
Considering bearish divergences on indicators and the upward channel pattern, Binance Coin might witness a brief comeback. But a closing beyond the 38.2% FIB mark would cancel these bearish tendencies. Either way, targets would stay as discussed above. Lastly, watching Bitcoin’s actions and broad market sentiment is crucial to complement the above analysis.
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