Binance Coin Value Evaluation: June 07 – AMBCrypto Information
Binance Coin had a good first half in 2021. The price traded at around $ 40 in December 2020 and hit a record high of $ 693 in May, an increase of 1,500% in just 5 months. During its meteoric rise, BNB positioned itself at the top of the crypto ladder and was consistently in the top 5 rankings. The May 19 crash may have stalled the BNB’s uptrend, but the price has steadily rallied since the pullback.
BNB 4 hour chart
During a quick purchase phase on the 2o. May pushed Binance Coin towards $ 420, the selling pressure eventually took over, dragging the cryptocurrency to monthly lows of $ 210. This created a demand zone as the NBB began its recovery path. Although the BNB was not immune to regular market corrections, it managed to find support at higher levels – at $ 290, $ 370 and $ 390, respectively. The downward sloping trendline indicated that price has made higher lows – a positive development. An ascending triangle formed with the top trendline showing resistance between $ 420 and $ 430.
Binance Coin trades within an ascending triangle – a pattern that usually sees a breakthrough upwards. OBV’s higher lows indicated that buying volume has increased in the past two weeks. The MACD was nearing a bullish crossover while the histogram indicated weakening bearish momentum.
In addition, the upward trend of RSI was confirmed by the price action of the BNB. While this may not be a sign of an immediate price spike, it did show that the bulls were gaining control and preparing for the next upswing. A key region to overtake was around $ 430. This area supported the strong withdrawal of the NBB in mid-April and even triggered a 25% rally shortly afterwards. The same line was highlighted multiple times even after the May 19 crash. A successful breakout could open the doors for a 20% rise towards the $ 500 mark.
Important levels to look out for:
Entry: $ 400
Take Profit: $ 500
Stop loss: $ 360
Risk / reward ratio: 2.73
A bullish narrative has been building on the Binance Coin market since May 19th. The overhead resistance between $ 420 and $ 430 has been tested multiple times while the price has made higher lows. An ascending triangular setup formed, and the technical factors favored an upward breakthrough. Traders can exit their positions as soon as the BNB approaches $ 500 – an area that coincided with the 50 SMA on a higher timeframe (daily chart).
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