- Binance Coin made a solid bounce off the $335.3 level for a second week in a row.
- With bulls having had twice the window of opportunity to get in for long, expect price action to be in control for bulls next week.
- Bulls and investors will need to keep in mind that the downtrend is still present.
Binance Coin (BNB) lost 33% of its value in the descent from last week's trading. But investors are looking to flip a coin as BNB price action looks set for either a 30% uptick next week or shedding another 20% of its value. As bulls have entered twice in two weeks at $335.3, the risk is that the level loses interest among investors and bulls and could break if global markets face another week of headwinds.
Binance Coin sees bulls flipping in coin for next week's trading
Binance Coin bounces for a second week in a row off the $335.3 level that coincides with the monthly S2 support level and sees bulls attempting to close above $400. That attempt from last week failed, this week looks a bit more promising and could set the scene for more upside towards $452. But that is where the good news stops for now for more upside as the 200-day Simple Moving Average (SMA) hovers as cap just above that level, and the red descending trend line from the high of December is still present and acts as the backbone for the downtrend.
BNB price will thus need to go into the weekend and have investors attempting to stay above the $400-markerm to produce a bullish candle and set the scene for next week. As the weekend will give institutional investors a chance to let the dust settle and come up with a game plan for current market conditions, the potential of Binance Coin could be a valuable asset in that game plan for institutionals and hedge funds going forward. This creates plenty of demand throughout next week and could lift price action towards $466 for a test and pole position for the week after that.
BNB/USD weekly chart
As BNB price action looks to go, either way, a further continuation of the downtrend is more than possible. Current headwinds contain much more fundamental weight and could set the tone for the rest of February. A third test and break below $335.3 could add another 20% of losses, with $256.9 as the low for the end of March and several bounces and false breaks along the way towards the coming week.
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
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?