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Binance Coin (BNB) Gears up for Breakout Attempt Above $330

Analytics

beincrypto.com 25 August 2022 12:05, UTC
  
Reading time: ~2 m

Binance Coin (BNB) is following an ascending support line and is approaching the $330 area, potentially making another attempt at breaking out.

BNB has been moving upwards since reaching a low of $183.40 on June 18. The upward movement caused a breakout from a descending resistance line on July 29. At the time of the breakout, the line had been in place for 264 days. 

Breakouts from such long-term structures usually lead to a sustained upward movement. However, that was not the case here, since the price decreased shortly after the breakout.

RSI breakdown

The daily RSI also fails to confirm the legitimacy of the breakout, since the indicator has broken down from an ascending support line.

However, it is currently making an attempt at moving above 50, something which would be considered a bullish development.

So, there are mixed signs in the daily time frame, coming from both the price action and indicator readings. 

BNB/USDT Chart By TradingView

Breakout attempt

A closer look at the daily movement shows that the main resistance area is at $330. The area has caused three rejections until now (red icons). 

Currently, BNB is following an ascending support line and is approaching the area once more, potentially making another attempt at breaking out.

A breakout above the $330 area would be expected to take the price towards the next resistance at $400. Conversely, a decrease below the ascending support line would indicate that new lows will follow.

BNB/USDT Chart By TradingView

BNB/BTC

News account @BSC_Daily tweeted a chart that shows BNB has reached a new all-time high relative to BTC.

Source: Twitter

BNB reached an all-time high of ₿0.0142 on Aug 22. If the upward movement continues, the next resistance area would be at ₿0.0157, created by the 1.61 external Fib retracement resistance level. It is possible that the price will reach it. 

However, there is a growing bearish divergence in the weekly RSI (green line). So, if the divergence is not invalidated by the time BNB reaches resistance, something which seems unlikely, it would be possible for the price to reach a local high there and then begin a downward movement.

BNB/BTC Chart By TradingView

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here


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