Binance Coin (BNB) Defends Current Support, Upward Move to $16 Likely

Binance Coin (BNB) Defends Current Support, Upward Move to $16 Likely

Key Resistance Levels: $22, $26, $30
Key Support Levels: $12, $8, $4

BNB/USD Price Long-term Trend: Bullish
Binance Coin fell to the low of $12 and consolidated above it. After a while, the BNB commenced an upward move as the bulls break above the EMAs. The coin is expected to rise as the price is in the bullish trend zone. In retrospect, in October, the price broke the downtrend line and closed above it.

It was assumed that BNB is in a bullish trend zone. However, the bullish trend was short-lived as the coin was repelled at $21. The selling pressure resumed as the coin fell to $12 low. The current upward move is likely to face resistance at $16 and $20. However, if the bulls overcome these levels, the coin will be out of the downtrend zone.

BNB/USD - Daily Chart

Daily Chart Indicators Reading:
The coin is likely to rise as the price bars are above the EMAs. The stochastic is indicating that the market is above the 60% range. This explains that the coin is in a bullish momentum. Nevertheless, if the price breaks below the EMAs, the selling pressure will resume.

BNB/USD Medium-term bias: Bullish
On the 4-hour chart, the coin was in a smooth bullish movement since January 3. The upward move was terminated at $15.50. The coin dropped to the low of $14 and recommenced another bullish move. The second retest makes the coin to pullback.

BNB/USD - Daily Chart

4-hour Chart Indicators Reading
The Relative Strength Index (RSI) period 14 level 63 indicates that the coin is in the bullish trend zone. Besides, the coin will rise as it is above the centerline 50. The price is retracing after the resistance at $15.50. BNB will drop if the price falls below the support line. However, if the support holds, the bulls will continue their upward testing of the overhead resistance.

General Outlook for Binance Coin (BNB)
Binance Coin is now trading in the bullish trend zone. The coin is likely to rise but may face resistance at $16. BNB will rally above $20 if the bulls overcome the resistance at $16. Failure to break through the resistance will compel the coin to fall. In other words, the market will revisit the previous support at $12.

Binance Coin Trade Signal
Instrument: BNBUSD
Order: Buy Limit
Entry price: $15
Stop: $12.50
Target: $22

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.