The BNB price has held above the 38.2% retracement level, maintaining further growth potential for investors. Meanwhile, the recent correction in the crypto market has left several cryptocurrencies vulnerable to a possible plunge toward their 2022 bottom support level.
Key Points BNB Analysis
- The BNB price action is governed by an inverted head and shoulder pattern.
- The market has been range-bound for a while now, but a bullish reversal from the support trendline may increase prices to $337.
- The price of BNB has been increasing steadily over the past day, with intraday trading volume amounting to 2% gain.
Why Might BNB Hit $360?
Bullish Breakout
When the BNB price dipped below $184, it bounced back strong to reach $337, with an 84% increase. The price of BNB briefly broke through an in-between resistance trendline, which had limited bullish growth since November 2019. The breakout from this resistance will give you an early sign that the trend is about to reverse.
The Support Trendline
The market experienced several pullbacks, replenishing the bullish momentum for further gains. The Binance Coin is responding to a new support trendline, indicating that the cryptocurrency’s value could soon recover from these higher lows.
Furthermore, this recent correction has stalled at a support trendline and appears to be heading for an appearance in the morning star candle. This means traders can maintain a bullish bias until the trendline has been restored.
Head and Shoulder Pattern
The BNB price has struggled to surpass the $337 resistance for three months. It is range bound but will likely break out soon. The price consolidation with stiff resistance shaped an inverted head and shoulder pattern. Recent price movements have reinforced the pattern’s right shoulder formation.
The post-correction rally has significantly increased (6.61%) in the past few days. The coin price is likely to rise 13.8% if the bullish pressure persists and hits $337 by the end of the day today. The buyers should break neckline resistance to accelerate the bullish momentum.
A breakdown from $275 could invalidate the bullish thesis if the selling continues in this market.
Currently, the BNB price is following the bearish trend. It hovers between $272 and $281 level, almost 2% down over the last 24 hours.
Technical Indicator
- RSI indicator: We can see that the daily RSI slope has jumped into bullish territory, which indicates positive sentiment is returning to the market.
- DMAs: With the 200 DMA aligned with $337 resistance, buyers will face additional hurdles in their journey to buy up these coins. The 50 DMA has turned to dynamic support, assisting in maintaining the recovery rally.
- Resistance Levels: $337 and $360
- Support Levels: $275 and $244
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