- The formation of a double-top pattern in an up trending market is usually interpreted as a bearish signal.
- Technicals show the bulls having the strength to pull BNB higher above $35.00.
Binance Coin bulls continue to outperform not only themselves but also the other altcoins on the market. While cryptocurrencies are still in consolidation following the surge in May, BNB has continued to break barriers on the upside. Initially, the rally last month propelled the digital asset to highs above $35.00. However, the correction in the last week of May trimmed the gains considerably.
BNB/USD 4-hour chart
Both the 50 Simple Moving Average (SMA) and the 100 SMA 4-hour failed to function as support as the bears pushed the price below $32 level as well as the $30. Further declines dipped to levels very close to $28 before a reversal occurred amid wide-spread market consolidation in the first week of June.
Binance Coin bulls battled the resistance at the 50 SMA 4-hour and the 100 SMA 4-hour. However, the weekend trading sessions kept the price within a tight range between $30 and $32 limits. A break above the 100 SMA hurdle at $32.00 on Monday relaunched BNB/USD into another impeccable trajectory north. The crypto scaled the levels above $35 but just like the surge in May, the momentum has stalled under $36.00.
The formation of a double-top pattern in an up trending market like this is usually interpreted as a bearish signal that leads to a reversal. The reversal occurs as long as the price fails to sustain growth above the previous top level. In this case, it is essential that BNB rises above $36 and forges towards $40 to avoid declines due to the reaction to the double-top pattern.
Technicals show that the bulls have the strength to pull BNB higher above $35.00 and even test the $40 level. The RSI although in the overbought, continues to rise to show that the bulls are far from getting exhausted. Meanwhile, a double-cross by the 50 SMA above the 100 SMA will cement the bulls’ presence on the market.
Binance Coin Technical Indicators
Key Support Areas: $32, $30, $28 and $24.
Hurdles: $36.00 and $40.00.
RSI: Hints further breakout amid stronger up trend.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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