Binance Coin (BNB) Faces Difficulty in Crossing 200-DMA
Starting with the objective of creating an ERC20 token to support discount fees, BNB has expanded to multiple horizons. Currently, BNB is the 4th largest cryptocurrency with a market capitalization of over $51 billion. While all other cryptocurrencies are rallying and trending, BNB is sitting ducks. But for how long will BNB sit quietly? Technical analysis indicates some resistance, which can quickly turn into a support zone.
Binance Coin Price Analysis
Binance Coin (BNB) has been trying hard to push past its resistance, but the price momentum and resistance have stalled any Stellar movement. Over the past few days, the price action has been limited to 2-3% in a day which is surprising, considering all other cryptocurrencies are rallying.
After making a low of $254 on July 20, the BNB coin has retraced about 29% on intraday duration. But it is still facing flak near the 200-day moving average. Further, upside momentum can only be expected if only Binance Coin manages to close over the 200 DMA. Till the time, it will be trapped in the consolidation zone of $256 – $340. Although RSI has improved, it still shows a neutral level indicating equal participation of buyers and sellers at $300 levels.
MACD has been close to flat, but since it is zeroing towards the positive axis, a big upside move can be expected in BNB once it crosses the 200 DMA. The situation is ripe for investment, as it carries a considerable risk to reward ratio. We can see a rise in positive volume followed by profit booking on July 26, 2021, but for the positive sentiment to turn into a bullish rally, BNB needs to cross past the 200 DMA. On the upside, there will be a strong resistance induced by profit booking at the $430 level.
On hourly charts, Binance Coin has resistance around $340 and support active at $250. Based on Binance Coin prediction, BNB can quickly move towards resistance, given the steep rise in buying action indicated by the volume charts. Another positive aspect of Binance Coin is the incline of the RSI indicator, which has bounced from oversold zones and headed towards overbought zones.