Here’s Three Technical Signals that Suggest BNB Should Rise above $360admin
Published 32 mins ago
Amid the recent correction in the crypto market, several cryptocurrencies lost crucial support and are threatening to plunge back to their 2022 bottom support. However, the BNB price has managed to hold above the 38.2% retracement level, maintaining further growth potential for investors.
Key points BNB analysis:
- An inverted head and shoulder pattern governs the BNB price action.
- A bullish reversal from the support trendline may surge the next upswing to $337
- The intraday trading volume in the BNB price is $1.28 Billion, indicating a 2% gain.
Three reasons that may bolster BNB price to surpass $360-
1)Bullish breakout from long-coming resistance trendline-
The ongoing recovery began when the BNB price bounced back from $184.54 and surged 84% higher to the $337 mark. However, on July 29th, this bull run breached an in-between resistance trendline which had limited bullish growth since November 2019
Thus, a bullish breakout from this resistance gives an early sign of trend reversal.
2)Upcoming support trendline:
The ongoing recovery showed several pullbacks, which replenished the bullish momentum for further gains. However, connecting these higher lows, it seems the BNB price is responding to a new support trendline.
Furthermore, the recent correction stalled at this support trendline, and the price reverted with a morning star candle. Thus, until the trendline is intact, the traders can maintain a bullish bias.
3)BNB chart shows formation of an inverted head and shoulder pattern:
The BNB price has been struggling to surpass the $337 resistance for over three months, forming a range-bound rally. However, the price consolidation with stiff resistance shaped an inverted head and shoulder pattern. Moreover, the recent correction bolstered the pattern’s right shoulder formation.
Furthermore, the post-correction rally has surged 6.61% in the past three days. If the bullish pressure persists, the coin price should rise 13.8% to hit $337. Under the pattern influence, the buyers should break neckline resistance to accelerate the bullish momentum.
Thus, the resulting rally may drive the prices to the $500 mark.
On a contrary note, if the selling pressure persists in the market, a breakdown from the $275 would invalidate the bullish thesis.
RSI indicator: the daily RSI slope jumps into bullish territory, indicating that positive sentiment is returning to the market.
DMAs: The 200 DMA aligned with $337 resistance adds an additional hurdle for buyers. Furthermore, the 50 DMA flipped to dynamic support assists in maintaining the recovery rally.
- Resistance Levels: $337 and $360
- Support Levels: $275 and $244
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.