- Binance Coin spikes to levels of January 2018 as the crypto market trends higher.
- BNB buyers still have the potential to take the price back above $20.00.
The recent surge across the cryptocurrency market pushed Binance Coin higher. However, the digital asset had been in an upward correction since the downtrend found balance roughly at $4.25 in December 2018. In 2019 alone, Binance Coin has risen by 72% and by 38.41% in the last thirty days.
According to the data by CoinMarketCap, Binance Coin is changing hands at $19.37 following a 0.99% rise in the last 24 hours. It has a 24-hour trading volume that stands at $221 million while the market capitalization is at $2.7 billion. Binance Coin currently sits in the 7th position on the market. Besides, it is eyeing for the market’s 6th position currently held by Stellar (XLM) with a market cap of $2.41 billion.
4-hour chart short-term outlook
According to the 4-hour chart, BNB/USD is maintaining the trading above an ascending trendline. This means that the generally the price is slopping to the upside. However, traders should be aware of the bearish momentum that is building following the rejection at the 14-month high, $22 (the level of January 2018). Correction above $20.00 is becoming an uphill task that is currently culminating in a downward motion towards the weak support at $18.00.
In addition to the visible bearish correction, the Relative Strength Index (RSI) 4-hour has retreated from the overbought. The signal from the indicator is strongly negative, which explains the reversing trend.
On the other hand, all hope is not lost because the buyers still have the potential to take the price back above $20.00. If not, they have the energy to defend the support at $18 and $16 and keep the price above the ascending trendline.
Notably, since December 2018, the 50 SMA 4-hour has been able to stay above the longer term 100 SMA 4-hour. In fact, over the last thirty days, the gap between the simple moving averages has widened to show the bulls are still in control.
Prediction: While the upside will continue being limited below $20.00, Binance Coin has massive potential to sustain the price above $18.00 in the coming sessions. Moreover, the second support at $16.00 will come in handy to prevent further losses in the event the bulls give in against the bears.
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige