BNB price eyes $400 as Binance Coin bulls keep showing up

Binance Coin is consolidating within a descending parallel channel, which has precipitated a bullish breakout before.
BNB could hit $400 soon, 5% above current levels as bulls continue to show up.
The bullish thesis would be invalidated by a break and close below $360.00.

Binance Coin (BNB) price has formed lower highs and lower lows over the past few days, but the bulls continue to maintain a strong presence in the market. BNB has also steadfastly shown strength despite the recent uncertainty in the market as altcoins awaited cues from Bitcoin (BTC) price.

Also Read: Binance likely to be monitored for up to five years, CZ’s sentence could be less than 18 months

BNB price eyes 5% gains

Binance Coin (BNB) price is trading with a bearish bias, consolidating within a descending parallel channel. However, this technical formation has historically proven to be a healthy correction for BNB. This coupled with the strength seen in the altcoin even when markets were showing weakness, inspires optimism.

If history rhymes, the Binance Coin price could break above the upper boundary of the descending parallel channel, clearing the $387.30 range high before making a 5% climb to the $400.00 psychological level.

Notice the Relative Strength Index (RSI) remains northbound despite BNB being overbought already. The Moving Average is also suggesting a renewed bullish wave as it moves above the signal line (orange band). Its histogram bars, just like those of the Awesome Oscillator (AO), remain in positive territory, accentuating the bullish thesis.

BNB/USDT 1-day chart

On the other hand, with BNB already overbought, the altcoin’s price is at high risk of a correction. The histogram bars of the MACD are also losing their green shade, suggesting the bears are gaining strength in the BNB market.

If the bulls show weakness, the bears could take over. This could see Binance Coin price break below the $360.00 support. This would invalidate the bullish thesis, setting up BNB for an extended fall.

Share: Cryptos feed

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.

Join Telegram