Binance Coin was looking promising to continue its upward trajectory today, since rebounding off the bottom of a bearish decline back in early February. The native exchange token started the morning in the green, with traders clinging to the more stable BNB asset amidst the negative market we woke up to today.
In the last few moments however, another bearish tidal wave has started to wash over the crypto-space, with double digit losses starting to appear across the Coinmarketcap index.
While we wait for this sudden onset of FUD to subside, let’s take a look at how BNB was/could be shaping up today.
Over 3hr candles we can see that the more recent price activity was beginning to consolidate inside a bullish pennant, with lower lows creeping up the diagonal support beneath (dotted white line), as well as increasingly lower highs.
Inside this pennant we can also see a soft flipping resistance/support level at $14 which has been currently holding down the price action’s progress. This has now become a second area to keep an eye on, as we could find an ascending triangle form between this level and lower lows if BNB takes longer to recover from the present selling pressure.
Outside of the pennant, there is also an overbearing channel beginning to force BNB sideways between the upper 0.5 fibonacci resistance at $17, and the lower 0.618 fib support at $12.88; both of which have been met 3 times without successful deviation.
In light of this recent selling activity it’s likely that we could see Binance Coin continue inside this channel for an extended period and collapse the bullish pennant setup.
Looking at the EMA lines, we can see hopeful signs that the 50 EMA (red) has yet to diverge with the 200 EMA (yellow), known as a ‘Death Cross’, which tells us that BNB is not in danger of a serious bearish decline just yet. However this could all change, so these two indicators will need to be monitored closely as this market plays out.
Momentum indicators over 15min candles are starting to look more favourable of a bullish recovery, with MACD returning above the slower MA toward the signal line and RSI starting to climb away from the oversold channel area.
As we can see above, Bollinger bands are also expanding with the price action converging away from the lower band. BNB is however, now outside the pennant support which appears to be acting as a resisting level. We will hope to see the price action break above this soon and begin retracing back to the soft resistance at $14 inside the pennant, before waiting for further bullish signals to arrive.
Binance Coin (BNB) Price Targets
Once BNB returns to the $14 mark, we would hope to see bullish sentiment pick up where it left off this morning and continue to drive the asset upward towards the first target at the 0.382 fib level ($17.12). This would give us an ROI of 22.31% from the $14 level.
We should expect to reach the second price target once BNB breaks outside of the first green channel and becomes pinched between the 0.382 and 0.236 fib levels.
The upper 0.236 resistance level will give us a final price target of $19.75, where we should expect to see trading confidence tested as BNB approaches the $20 mark.
This will deliver an overall ROI of 41.09% from the $14 mark.
This article appeared first on Cryptovest
