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