Binance Coin (BNB) Technical Analysis: Two Major Partnerships Boost Bullish Momentum
Binance Coin is holding on to its lead well today as the best performer out of the top 20 cryptocurrencies, while the vast majority of altcoins continue to slump in the red. Right now, BNB is up at 6.26% against BTC with NEM in at a close second, currently up 5%.
This week, Binance announced two new partnerships, one with the Chinese blockchain-based travel platform Tripio, and one with the blockchain-based virtual reality platform Decentraland; both of which will now promote the wider use of Binance’s native BNB cryptocurrency. The new strategic deal with Tripio will enable users to make reservations in over 450,000 hotels using BNB, and should help drive the mainstream adoption of Binance Coin as a digital payment system. The recent Decentraland partnership will allow virtual land buyers to purchase plots using BNB, in the second upcoming land auction scheduled next week.
So far this string of announcements has had a very positive impact on the asset’s price but will this pump last amid today’s falling market, or will short-term traders bank today’s profits and drive BNB back down? Let’s take a look.
On the 1D BNB/BTC chart, we can see that BNB was tracking inside a bearish head and shoulders pattern from March through to August this year, but was able to break sideways along the neckline support until mid-November before finally breaking bearish. Typically, these patterns are strong bearish reversal signals and assets usually plummet after the right shoulder retraces to the neckline support. In this case, however, it seems that BNB has avoided a heavy reversal for now and is actually attempting to break back into the neckline channel above (blue region).
The recent news has helped catalyze an upside recovery off the first major support level around 124,000 Sats, but bulls are already experiencing increased selling pressure from bearish traders near a key resistance at 140,750 Sats. This will be the first major test for buyers to overcome in the short-term, but if they can successfully break this level, then a bullish continuation will be likely.
Right now, a number of 1hr chart indicators are supporting a bullish continuation, as new investment continues to flow in.
-The recent surge in buying momentum has driven BNB into the overbought region on the RSI indicator. Ordinarily, we would expect a correction to occur, but momentum appears to be growing still as the indicator line surpasses the 80% mark.
-On the MACD indicator, there was a brief divergence between the 12 and 26MA’s as BNB corrected from its first impulsive movement, but now bulls appear recharged and are driving the asset up again. At the moment, both moving averages are high above the signal line, there are strong buying candles on the histogram, and the 12MA is now pulling away bullishly from the 26MA again.
-On the Chaikin Money Flow indicator, we can see that buying pressure is still high and the indicator line is well above the zero line.
-We also have a golden crossover between the 50 and 200 EMA lines, which is a very good sign of strong bullish momentum.
Binance Coin (BNB) Price Targets
Judging by the indicators, we should expect BNB to break into the neckline region above soon and overcome the first resistance at 140,750 Sats.
From there, the next major resistances can be found at the 145,000 (3.13% gain from the current value) Sats level and then somewhere near the 155,260 (10.43%) Sats level.