Binance Coin price to give bullish breakout another go

Binance Coin price is likely to provide sidelined buyers another opportunity to accumulate.
Investors need to be careful in buying BNB dips due to the uncertain market outlook.
A breakdown of the $596.5 support level will invalidate the bullish thesis.

Binance Coin (BNB) price exhaustion is likely to trigger a short-term correction. If the market outlook improves then the incoming pullback will be a good place to buy BNB on the dips.

Also read: Binance Coin pice poised to break all-time high after recent surge

Binance Coin price takes another shot

Binance Coin price broke out of the ascending triangle on June 4 and was due to retest the theoretical forecasted target of $775 after a 21% rally. However, the impulsive move stopped after a 13% rally that led to the local top formation of $721.8. This lack of momentum is likely to result in a 7% retracement that retests the ascending triangle’s base at $635.2.

Depending on how Binance Coin price reacts to the aforementioned level, investors can make their own decisions. A bounce above $635.2 will show that the buyers are in it for the long haul and are defending this key barrier. In such a case, BNB could embark on a bullish journey and target the theoretical forecasted target of $775.5.

While BNB retests the $635.2 support level, the Relative Strength Index also needs to hold above its mean level of 50. This development would further reinforce the optimistic outlook and help Binance Coin move toward $775.5.

BNB/USDT 1-day chart

On the contrary, if the market outlook continues to deteriorate, then Binance Coin price is unlikely to hold above the $635.2 support level. A reentry into the ascending triangle setup would invalidate it.

However, if Binance Coin price flips $596 into a resistance level, it would create a lower low and invalidate the bullish market structure. Such development could see BNB nearly 6% and tag the $562.6 support level.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram