Binance Coin Price Movement Analysis for 1st September, 2021

 145 Interactions,  2 Today

With Bitcoin unable to breach its $50k price cap, the altcoin market has been rather calm, with a few outliers. Binance Coin, like the majority of its peers, has recently faced selling pressure. A declining channel accurately documented BNB’s value decline, which was defined by lower highs and lower lows.

Nonetheless, the bigger uptrend that the alt seems to be noticing may just inspire a northbound move. BNB was valued at $474 at the time of writing, up 2% in the previous 24 hours.

Binance Coin 4-hour Chart

BNB’s down-channel has been active for a week after the price broke a swing high of $517.7. Because the pattern formed on the heels of a strong uptrend, the setup is likely to play out as a continuation pattern. An impulsive advance over BNB’s recent swing high of $481.1 would increase the likelihood of an upswing, while a pullback between $487-$480 would also benefit the bulls.

See also  Ethereum Price Movement Analysis for 22nd May, 2021

Targets of $540 might be set once the breakout happens. This corresponds to a 13 percent increase over BNB’s press time price.

If a move above the upper trendline is rejected and BNB’s channel dives close to $437.6, the price is vulnerable to further declines because the move would encourage short-sellers.

 

Reasoning 

An notable development was recognised by the RSI. At press time, the index, which was trading within its own down-channel, had broken out. This implied that there was room for the RSI to continue rising, which may spark market purchasing.

The Awesome Oscillator displayed a sequence of green bars and anticipated a recovery above its half-line. This indicated that another buy signal was on the way.

Finally, the Directional Movement Index was getting close to a bullish crossover between the +DI and -DI lines. However, if BNB is to retain its pace, the ADX reading of 18 must rise.

Conclusion

Although Binance Coin seems to be preparing for a down-channel breakout, predicting a bullish outcome is premature. Moving forwards, the 24-hour trading volumes and ADX must be closely monitored because they will provide additional insight into a price fluctuation.

See also  Aave, Chainlink, Decred Price Movement Analysis for 10th April, 2021

Traders can play it safe and go long BNB if the price closes over $481, with take-profits set at $540.

 

Subscribe to our newsletter

Loading

Leave a Reply

Your email address will not be published. Required fields are marked *