Binance Coin Price Movement Analysis for 7th June, 2021

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Binance Coin has seen a good first half in 2021. Trading around $40 during December 2020, its price managed to snap record levels at $693 in May- representing a jump of 1,500% in just 5 months. During its meteoric rise, BNB positioned itself at the top of the crypto-ladder and has been in the top 5 rankings consistently. The 19 May crash may have stalled BNB’s upward trajectory, but the price has been making steady recoveries since the pullback.

BNB 4-hour chart

While a fast purchase wave on May 2 pushed Binance Coin over $420, selling pressure finally took control, dragging the cryptocurrency to monthly lows of $210. As BNB began to recover, this resulted in the formation of a demand zone. Although BNB has not been immune to market declines, it has found support at higher levels, including $290, $370, and $390. The bottom sloping trendline suggested that the price was establishing higher lows, which was a bullish sign. Between $420 and $430, an ascending triangle developed, with the higher trendline representing resistance.

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Argumentation

Binance Coin traded within an ascending triangle, a pattern that normally results in an upwards break.

The higher lows of OBV indicated that purchasing volume has increased over the last two weeks. The MACD was approaching a bullish crossing, but the histogram showed a decline in negative momentum.Furthermore, the increase of the RSI was verified by the price movement of BNB. While these were not immediate signals of a price swing, they did signal that bulls were taking control and preparing for the next upcycle. Around $430 was a critical area to conquer. This region provided support for BNB’s steep drop in mid-April, triggering a 25 percent recovery shortly thereafter. The identical sentence was also highlighted many times following the 19 May disaster. A good breakthrough might pave the way for a 20% increase towards the $500 level.

Crucial levels to watch out for:

Entry: $400

Take-profit: $500

Stop-loss: $360

Risk/Reward Ratio: 2.73

Conclusion

Since May 19, a bullish narrative has been forming in the Binance Coin market. Multiple times, the price has challenged overhead resistance between $420 and $430, while the price has established higher lows. During the process, an ascending triangle formation formed, and the technicals suggested an upside break. Traders can liquidate their positions as BNB hits $500, which corresponds to the 50-SMA on a higher timeframe (daily chart).

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