Key Support level: $460
Key Resistance level: $526; $690
Binance Coin (BNB) has rallied 22% in the past four days on the news that Binance, the largest crypto exchange in the world, will invest $1 billion into the Binance Smart Chain (BSC) ecosystem.
Following the news, BNB has successfully broken above the key technical resistance level at $460, making it support. The price is now seemingly getting ready to test the first resistance at $526 and start making its way towards the all-time high at $690.
Indicators
Volume: We saw excellent volume on the breakout, which confirms that the move is sustained. We can probably expect the price to continue moving upwards towards the first resistance. It’s important to pay close attention to the volume as increasing volume on a move up is extremely bullish.
RSI: The RSI on the daily timeframe is making higher highs, which is good news for bulls as it is still quite far off from the overbought area (RSI >70). This shows that the price has plenty of room to move higher.
MACD: The moving averages, as well as the histogram on the daily timeframe, are making higher highs, and MACD has been on the positive side since early October. At this time, nothing suggests that the trend could reverse. This can be considered to be very bullish.
Bias
Presently, the bias is bullish. A major resistance level was broken at $460, the price successfully turned it into support, and now it continues up. This action conforms to a real breakout.
Moreover, with the news that Binance will invest $1 billion into the BSC ecosystem, it is rather hard to be bearish right now. This bias will be reassessed if and only if we break below $460.
Short-Term Price Prediction for BNB
The real target for this rally is $690. If we manage to break that level, BNB will enter price discovery, and the price could increase even higher.
The above analysis was written by DU09.
