The Binance Coin (BNB) price has made several unsuccessful attempts at reaching a new all-time high over the past month. Lower time-frames show a possible reversal that would suggest BNB is likely to make another attempt.
The weekly chart shows that BNB has been following an ascending support line since reaching a low of $6.38 in March. It has been consistently increasing above this support line, but has just begun to show its first signs of weakness.
The weekly RSI has generated significant bearish divergence, the Stochastic Oscillator is in the process of making a bearish cross and the MACD has lost nearly all of its strength. Furthermore, BNB is approaching the all-time high resistance at $39.5.
However, until BNB breaks down from the support line and the Stochastic Oscillator makes a bearish cross, we cannot consider the trend bearish.
The daily chart shows that since breaking out above the $27 resistance area, BNB has stayed above it the majority of the time. It validated the line as support numerous times.
Therefore, as long as BNB trades above this level, the trend is considered bullish. If it breaks down, the next support area is at $21, the 0.5 Fib retracement of the entire move.
The shorter-term two-hour chart is bullish. It shows that BNB has created two long lower wicks inside the 0.5-0.618 Fib retracement area. This is a sign of buying pressure. Furthermore, both the RSI & the MACD have generated bullish divergence. This is a sign that it is likely to head higher, possibly making another attempt a creating a new all-time high.
Cryptocurrency trader @CryptoTony outlined a BNB chart. He stated that the short-term movement shows a bullish impulse which is likely to take BNB all the way to $41.
Since the tweet, the five wave impulse has been completed, along with what looks like an A-B-C corrective structure (both shown in black).
If correct, we would expect the continuation of the upward move, since the C wave seems to be completed.
A decrease below the beginning of the upward move (red line) at $26 would invalidate this possibility.
To conclude, BNB is expected to reverse its bearish short-term trend and make another breakout attempt. A decrease below $26.60 would invalidate this possibility.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.
Source: Be In Crypto