Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
As the altcoin market mirrored a shift in momentum towards the patrons, Binance Coin (BNB) flipped its two-month trendline resistance to assist. The alt has been rangebound inside the constraints of its reversal sample for over a month now.
With the worth leaping the idea line (inexperienced) of the Bollinger Bands (BB), the patrons stored near-term management. A sustained place above the idea line might assist the patrons to invalidate the potential bearish inclinations.
At press time, BNB was buying and selling at $269.6, up by 5.59% within the final 24 hours.
BNB Daily Chart
Source: TradingView, BNB/USDT
Since dropping the $320-$326 vary in early May, BNB noticed a splurge within the promoting strain because it continued its southbound journey. As a end result, it poked its 16-month low on 18 June. Since then, the alt transposed into an up-channel on its each day chart.
Should the sample reignite any reversal tendencies, a short-term drawdown might happen. A bearish consequence would expose the alt to a possible check of the decrease trendline of the up-channel. Any decline under this mark might trigger a retest of the $216-$219 vary.
To affirm this consequence, bears would wish to implement an in depth under the idea line of the BB. Any rebound from the idea line of BB might result in an prolonged up-channel trajectory.
Should the patrons proceed to intensify their strain, the alt would try to shut above the 38.2% Fibonacci resistance within the coming periods. A compelling shut above the $271 zone would enhance the chance of an upswing towards the 50% Fibonacci stage.
Rationale
Source: TradingView, BNB/USDT
The each day Relative Strength Index (RSI) exhibited a slight bullish edge whereas reversing from its trendline resistance. This trajectory has affirmed a bearish divergence with value.
Similarly, the On-Balance Volume’s (OBV) decrease peaks reiterated a bearish divergence on this timeframe. However, the ADX depicted a considerably weak directional development for BNB.
Conclusion
Given the bearish divergences on the symptoms and the up-channel setup, BNB might see a slight setback. But an in depth above the 38.2% Fibonacci stage would disregard the bearish inclinations. In both case, the targets would stay the identical as mentioned.
Finally, retaining an eye fixed on Bitcoin’s motion and the broader sentiment can be essential to enrich the aforementioned evaluation.
