Binance Coin (BNB) tries to pass its historic peak

IN BRIEF

  • Binance Coin trades between $26.80 support and $31.80 resistance.
  • The NBB could move within an ascending triangle.
  • The price has completed a pattern of bullish momentum.

The Binance Coin (BNB) is trading near a long-term resistance zone, which it has been trying to overcome for the past 10 days.

While the direction of the next move is not entirely clear, a breakout of this resistance seems most likely.

Horizontal levels of the NBB

The price of the BNB began a rapid upward movement after a sharp fall on 4 September. In just ten days, the price managed to regain all of its previous losses to reach a new annual high of $33.35 on September 14.

After a corrective move, the NBB returned to the $26.70 zone, which should now serve as a support. For its part, the next resistance is at $31.70.

Since the beginning of October, the BNB has been trading between these two zones, although it is closer to the resistance.

A possible breakthrough

Cryptomurrency trader @raticoin1 shared a chart of the NBB, saying that if the price exceeds its current resistance, it could rise to $40 and then reach a new historical high.

The resistance zone indicated in the tweet is the $31.70 zone highlighted in the previous section. The BNB has also been following an upward support line since September 4, which forms an ascending triangle when combined with resistance.

Technical indicators in the daily data are bullish/neutral. The MACD, RSI and Stochastic Oscillator are positive, but their upward movement has halted and they show a relatively neutral slope.

That said, in the case of a breakout of resistance, a $40 target would be obtained by projecting the length of the triangle to the breakout point and the resistance zone.

The long term chart supports this possibility, as it shows that the price has already exceeded the fibonacci level 0.618 of the entire decline. This is a very common level for the end of a correction.

Furthermore, if the NBB exceeds the current resistance zone (fibonacci level 0.786), the road to $40 would present no further major resistance.

Wave count

The long-term picture is not entirely clear, but it is likely that the NBB has completed an A-B-C correction, which began on 14 October before starting an upward momentum.

As the impulse appears to be finalised, a short-term retracement is expected before the price resumes its upward movement.

In conclusion, the NBB is expected to exceed its current resistance after a possible short-term decline.