- Binance coin price is already up 13% for the week, as tailwinds emerge late Monday.
- BNB price could be set up for an additional 14% gain throughout the week.
- Expect current caps to hold as markets detox a bit from dollar strength.
Binance coin (BNB) is flipping its course and is pulling a 180 on markets as tailwinds emerged late Monday evening near the end of the US trading session. With price action being supported by tailwinds from the equity markets, several components within financial markets are relaxing a little bit after an extended period of pressure and dollar strength. With this deflation comes a period of easing in which cryptocurrencies get the chance to rally, putting up some nice returns for traders in the short run.
BNB price set up for a profitable week near-term
Binance coin price was no different from other cryptocurrencies held to ransom by the dollar strength that kept a firm grip on several asset classes like equities and bonds in financial markets. Several asset classes seem to be coming off a bit from their expanded levels as the dollar weakens, opening up room for breathing. With this, cryptocurrencies and equities have some room to rally, and traders are jumping at the opportunity in full force.
BNB price thus could see some severe underpinning of its price action with no real fades nearby as traders will want to use this limited window of opportunity before the dollar strength kicks in again. With already 13% on the docket, and another 14% in the prospect, the rally looks to be half done as $300 nears. Once popping back above that level, another $28 is up for grabs towards $328.80, where the 200-day Simple Moving Average (SMA) will act as a price cap again as it did on August 10 and 11.
BNB/USD Daily chart
Risk to the downside comes with the fact that a floor has been identified around $272, where price action bounced previously. In case no new highs can be printed, the risk could be that the price simply keeps bouncing as it makes lower highs. This points to a possible break as bears use the moves to sell the rally and eventually pierce through the base level at $272, to drop to $220.
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.
Follow us on Telegram
Stay updated of all the news
China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies
Brian Armstrong, CEO and co-founder of cryptocurrency platform Coinbase, shared his thoughts on restrictive US crypto policies in an opinion editorial published by Market Watch on Tuesday.
Ethereum holders pull $1 billion in ETH off exchanges hinting retail-led rally
Ethereum holdings in exchange wallets declined by $1.04 billion between May 8 and May 31. Interestingly, while large wallet investors have shed their Ether holdings, the altcoin got redistributed to addresses with less than 1 ETH.
Dogecoin price action hints DOGE can reverse its bearish trend
Dogecoin (DOGE) price presents a potential for trend reversal provided a certain set of conditions are met. These conditions involve overcoming key hurdles for DOGE bulls and seeing momentum indicators flip bullish on lower time frames.
PEPE price to drop another 15% as altcoin winter is only halfway finished
PEPE price is feeling the frost and cold of the altcoin winter that continues with some notable slides in price valuation in the altcoin space. After price action dropped below $0.0014700, traders must have understood that a turnaround would only occur at a high supportive level.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.