Binance Coin [BNB] Price Analysis : How Much Strength Is Left?

BNB Price Analysis

Binance Coin [BNB] Price Analysis : How Much Strength Is Left?

The price of BNB/USD recently broke out of the previous resistance and is currently moving upward with strength. We have seen several bullish engulfing 12-hour candles. However, the price has generated bearish divergence in both the medium (less pronounced) and short-term (more pronounced). In the short-term, the price has been following an ascending support line for the past 6 days and is in the process of creating a double top pattern.

Key Highlights

  • There is major resistance near $17.
  • There are support areas near $12.
  • Price is trading above medium and short-term moving averages.
  • There is bearish divergence developing.
  • The price has been following an ascending support line.

Binance Coin Analysis – BNB/USD – 12-Hours Chart

BNB Price Analysis
Chart Source: Tradingview, Binance

A look at the 12-hour chart for BNB/USD shows that price recently broke out of the $12 area of resistance. In doing so, it created several bullish engulfing candles, without significant retracement.  The price is currently trading at $15.1, below the $17 area of resistance. It is very close to reaching the highs achieved in June 2018.

As for the indicators, the price is trading above the 21 and 50-period moving averages which have made a bullish cross and are moving upward with strength. Furthermore, it is trading above the positive Ichimoku cloud. Similarly, the MACD is moving upward with strength, and is at the highest level recorded in more than a year. On a more negative note, there is a strong bearish divergence developing in the RSI, which is currently at 77, inside the overbought territory.

Binance Coin Analysis – BNB/USD – 1-Hours Chart

BNB Price Analysis
Chart Source: Tradingview, Binance

A look at the 1-Hours chart for BNB/USD shows that the price has been following an ascending support line for 8 days and 12 hours since the bottom at $9.5. The support line corresponds with the 200-period moving average. We can see that the current upward movement was done in significant volume, which albeit has been decreasing. The price rejected a double top pattern and continued its upward movement.

As for the indicators, similarly to the 12-hour chart, there is a bearish divergence developing in the RSI, which is trading at 55. in oversold territory. However, unlike the 12-hour chart, there is bearish divergence also developing in the MACD. The price is trading above the 21 and 50-period moving averages.

Summary
Binance Coin [BNB] Price Analysis : How Much Strength Is Left?
Article Name
Binance Coin [BNB] Price Analysis : How Much Strength Is Left?
Description
The price of BNB/USD recently broke out of the previous resistance and is currently moving upward with strength. We have seen several bullish engulfing 12-hour candles. However, the price has generated bearish divergence in both the medium (less pronounced) and short-term (more pronounced). In the short-term, the price has been following an ascending support line for the past 6 days and is in the process of creating a double top pattern.
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Valdrin Tahiri 37 Articles

Valdrin is an eager trader, cryptocurrency enthusiast, and freelance writer. He specializes in technical analysis, indicators and charting guides. Reach out to him at [email protected]