Binance Coin (BNB) Technical Analysis: Bulls Eyeing $32, Possible Bullish Pattern Breakout Soon
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Binance Coin (BNB) has been range bound between the $29 and $32 levels for the past 5 days, as bulls struggle to breakout beyond the strong psychological resistance. Looking at the 4-Hour and daily chart however, we can see two promising patterns that suggest Binance coin could be about to jumpstart its uptrend.
Today, the #7 cryptocurrency is up 2.73% against the US dollar, but trailing 0.16% behind Bitcoin. Trading volume over the last 24hrs picked up slightly during the Asian trading session, however there has been no significant spike yet to signal the start of a breakout.
In the news recently, the lucrative ‘Binance Effect’ has increased its scope after new DEX listing, Fantom (FTM), soared over 60% when it was moved on to the centralised platform. Binance’s Chief Financial Officer, Wei Zhou, has also leaked that a new stablecoin could be rolled out “within several weeks”, according to a Bloomberg interview.
Binance Coin (BNB) Price Analysis
On the 4-hour BNB/USDT chart we can see that the price is already halfway into forming a bullish ascending triangle pattern, against a strong resistance and uptrending support. This pattern is a promising sign that bulls are wearing down bearish traders, and could lead to a breakout if the resistance is successfully breached.
The 0.236 fibonacci level at $31.46 right now is providing strong intraday support for the asset, while bulls regain composure after this morning’s 2% crash. The psychological $32.00 level is likely to be adding pressure on a potential upside recovery, and will need significant support to overcome.
The breakout zone for this pattern sits along the top level at $32.30, which has already been tested twice unsuccessfully in the last week. Momentum on the RSI and MACD indicators appear to be favourably bullish, however trading volume still remains flat.
If bulls fail to break $32 in the short-term, then we could expect to see the asset unravel down to uptrending support before bullish traders push back. This is likely to be around the $30.65 area.
If the uptrending support breaks, then we should assume that the bullish pattern has been rejected.
On the daily BNB/USDT chart we can see that candles already appear to have reached maximum consolidation inside a pennant pattern, and have started to close above the sloping resistance.
Decreasing selling volume on the MACD histogram and the RSI making higher lows shows that bullish momentum is beginning to build behind the asset again.
Using a combination of the fibonacci retracement and fibonacci extension tools, we can see that there is a clear overlapping level at the $28.60 level which provided a strong springboard zone for bullish traders. Extending the fibonacci levels from this pullback area, we can predict that the first breakout target for BNB could be around the $37.30 mark if successful (red bar).