- Binance Coin price retraces to the $396 to $404 demand zone, hinting at a reversal.
- Investors can expect BNB to trigger a 17% ascent to $475.
- A breakdown of the $393 support level will invalidate the bullish thesis.
Binance Coin price has been on a steady downtrend after failing to set up a higher high. This downswing is currently stabilizing around a support level as BNB prepares for a new attempt.
Binance Coin price to give upswing another go
Binance Coin price was rejected by the 50-day Simple Moving Average (SMA) between February 15 and 17, leading to a 7% retracement. The resulting leg down pierced the four-hour supply zone, extending from $396 to $404, where it is trying to stabilize.
Finding a foothold in this area will lead to a strong bounce back to the 50-day SMA at $430, which is the first significant hurdle in the path for Binance Coin price. Clearing this area will open up the road for BNB to make its way to the immediate yet minor blockade at $445.
Beyond this level, Binance Coin price can retest the 200-day SMA at $475, bringing the total ascent to 17%. Interested investors can position themselves long around the demand zone and book profits at $445 and $475.
SHIB/USDT 4-hour chart
The four-hour demand zone, extending from $396 to $404 is crucial to trigger an uptrend for Binance Coin price. Failing to do so could result in a retracement to the immediate support level at $393.
A sweep of this foothold is likely to collect liquidity, but a four-hour candlestick close below it will create a lower low and invalidate the bullish thesis for BNB. Therefore, just under the barrier makes this the ideal place for investors to place their stops.
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.