• Binance Coin price has rallied 25% in the last five days and is fast approaching a critical hurdle.
  • A flip of $336 and $358 barriers into support levels will confirm if BNB can revisit $450. 
  • Invalidation of the bullish outlook will occur on the breakdown of the $255 level on the daily timeframe.

Binance Coin price could be running out of gas to continue its massive rally. While the last five days have been exciting for holders, the following days will need to be closely monitored. The threat of a downswing looms for BNB, and investors need to foresee the possibility of a pullback that might allow them to add more to their holdings.

Binance Coin price at an inflection point

Binance Coin price has shot up 25% in the last five days after sweeping the $255 support level for sell-stop liquidity. As BNB trades around the $315 level, there is a good chance a rounded top might form below the $319 resistance level. 

The last two rallies in May and August are prime examples of how crucial this $319 blockade is. However, a closer look at the Relative Strength Index (RSI), a popular momentum indicator, shows a move above the midpoint at 50. This development from RSI denotes that the bulls are in control as long as the index stays above 50.

This outlook allows for a retest of the RSI’s midpoint followed by a spike in momentum. Translating that into price action reveals that BNB could pull back to $303. In some cases, this correction could see Binance Coin price revisit the midpoint of the 50% upswing at $283. Both of these levels are good places to open long positions.

As for the upside, the Binance Coin price needs to overcome the $336 and $358 blockades to rally 24% and revisit the $445 hurdle. In total, this run-up would constitute a 56% gain for traders that open long positions at $283.

BNB/USDT 1-day chart

BNB/USDT 1-day chart

While the outlook for Binance Coin price is on the fence, investors should be wary of a pullback. If the retracement persists, pushing BNB to produce a daily candlestick close below $255 will create a lower low and invalidate the bullish thesis.

This move could further trigger an 8% downswing to $234 for the Binance Coin price.

Here's how Bitcoin price moves could affect Binance Coin price

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Cardano Price Prediction: The market bottom no one wants to call

Cardano Price Prediction: The market bottom no one wants to call

Cardano price continues to make gains in the crypto market, as the smart contract has risen 70% since January 1, reaching a new uptrend high at $0.4138. Despite the skeptical market sentiment for risk assets, Cardano’s Price action remains unfazed.

More Cardano News

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand price is showing an applaudable amount of strength to start the month of February. The scalable blockchain token could rally an additional 25% if market conditions are met.

More Algorand News

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com price has been trading within a 10% range for nearly two weeks. The $0.08 barrier has consistently acted as resistance, and the mid-$0.07 has acted as support. The coiling range has yet to make a decision on which way it will resolve.

More Crypto.com News

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic (LUNC) could only book roughly a 1.4% gain on the back of the Federal Reserve meeting from late Wednesday, which triggered upswings in all risk asset classes. The biggest winner of the evening was EUR/USD, as it traded over 1% higher and broke 1.10 to the upside.

More Terra Classic News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP