Disclaimer: The results of the following analysis are the sole opinions of the author and should not be construed as investment advice
Binance Coin has made a respectable run so far. The past week saw the formation of an upward channel and although a collapse threatened in some cases, buyers reacted appropriately on the lower trendline.
This puts the NBB back in a favorable position, with short-term market momentum on the bullish side. The next area of interest is $ 530 to $ 540 at best.
At the time of writing, BNB was trading at $ 493.8 and was ranked fourth on CMC’s crypto ranking.
Binance Coin 4-hour chart
The upward trend of the BNB has not stalled since the end of July. Higher highs and higher lows formed on a regular basis, and although the 17th double high, Alt price has since moved within an upward channel and the lower trendlines have caused some minor rallies over the past week.
This could happen again as the BNB finds support on the base trendline and moves towards the $ 540 level. Momentum was also on the buyers side as price moved above its SMAs of 20 (red) and 50 (yellow). In the event of an unprecedented price reversal, support found anywhere above $ 440 would be beneficial in the long run.
The Relative Strength Index pointed north from 62, indicating further upside potential before hitting the overbought zone. The + DI of the Directional Movement Index avoided a declining crossover and saw a higher high in the future. This would bring buyers back to the top after falling from $ 515 to $ 460.
Finally, the higher highs of the MACD confirmed the price action of the BNB. However, a bullish crossover is required to hedge this trend.
BNB price appeared to be reversing the lower trendline of its upward channel. A resistance zone between $ 530 and $ 540 would be the BNB’s next target if the momentum continues to side with buyers. If a collapse threatens, support above $ 440 should be found to prevent short sellers from initiating further drawdowns.
Although traders may have missed the ideal buy entry on the lower trendline, yearning for BNB at the release level would still bring some profits.