- Binance Coin is consolidating within a descending parallel channel, which has precipitated a bullish breakout before.
- BNB could hit $400 soon, 5% above current levels as bulls continue to show up.
- The bullish thesis would be invalidated by a break and close below $360.00.
Binance Coin (BNB) price has formed lower highs and lower lows over the past few days, but the bulls continue to maintain a strong presence in the market. BNB has also steadfastly shown strength despite the recent uncertainty in the market as altcoins awaited cues from Bitcoin (BTC) price.
Also Read: Binance likely to be monitored for up to five years, CZ’s sentence could be less than 18 months
BNB price eyes 5% gains
Binance Coin (BNB) price is trading with a bearish bias, consolidating within a descending parallel channel. However, this technical formation has historically proven to be a healthy correction for BNB. This coupled with the strength seen in the altcoin even when markets were showing weakness, inspires optimism.
If history rhymes, the Binance Coin price could break above the upper boundary of the descending parallel channel, clearing the $387.30 range high before making a 5% climb to the $400.00 psychological level.
Notice the Relative Strength Index (RSI) remains northbound despite BNB being overbought already. The Moving Average is also suggesting a renewed bullish wave as it moves above the signal line (orange band). Its histogram bars, just like those of the Awesome Oscillator (AO), remain in positive territory, accentuating the bullish thesis.
BNB/USDT 1-day chart
On the other hand, with BNB already overbought, the altcoin’s price is at high risk of a correction. The histogram bars of the MACD are also losing their green shade, suggesting the bears are gaining strength in the BNB market.
If the bulls show weakness, the bears could take over. This could see Binance Coin price break below the $360.00 support. This would invalidate the bullish thesis, setting up BNB for an extended fall.
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.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.