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Binance price shows promising support that could bring $400 onto quote board

  • Binance price jumps over 3% as China sentiment flips into risk-on.
  • BNB sees buyers blowing up the demand side with a bounce off a technical moving indicator.
  • Expect a tiered jump toward $340, next $360 and finally $400.

Binance (BNB) price rallies firmly in the ASIA PAC trading hours as China flips 180 degrees with commitments from the government to reopen further and speed up the vaccination rate. This cuts short the social unrest and puts the sponge over any further escalation and disputes.Furthermore, the world can release a sigh of relief as inflation now can continue to ease as no real inflation shocks are on the horizon, and Fed chair Powell can communicate that a less aggressive tone is needed to get inflation back to 2%, making it a white Christmas after all.

BNB is forecasting a white Christmas with a peak at $400

Binance price has seen heavy buying into its price action overnight as markets on Monday were not in the best shape. Although the NASDAQ rallied into the open, it quickly pared back losses as the US session took action for the first time in four days, with the holiday season putting it on hiatus. It was clear that Americans had not yet digested the turkey as Black Friday sales were somewhat lacklustre and pointed to a possible massive drop in retail sales to come for the regular, intense shopping season. 

BNB saw bulls coming in and buying the small dip that occurred at the 55-day Simple Moving Average (SMA) around $289. With the big jump this morning and US equities pointing to a higher opening, this rally could see a follow-through from the European session into the US session and its closing bell. Should that be the case, expect to see this rally push higher in the coming days and produce a possible test at $400 somewhere next week.

BNB/USD daily chart

BNB/USD daily chart

A lot of data is set to come out this and next week, with European inflation numbers, US inflation data and the US job report on the docket. Any number that could point to a jump in inflation could trigger a doomed market and see a massive sell-off. In that case, BNB will drop back below $280 and test $250 to the downside in search of some support.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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