During the last two months of 2021, the $500 mark was critical support for BNB coin bulls. However, entering 2022, the bear overpowered this coin and extended the correction rally below $500. Obtaining strong support from the $400 mark, the BNB price is rallying back to the $500 level, but this time as potential resistance.
Key technical points:
- BNB price chart shows a bearish crossover of the 50-and-100 DMA
- The MACD indicator shows a bullish crossover below the neutral line
- The 24-hour trading volume in the Binance Coin is $2.07 billion, indicating a 49.5% loss.
Source-Tradingview
Previously when we covered an article on Binance Coin, the BNB/USD pair breached a significant support level of $445. The bear attack continued, and the price dropped to $400 as warned.
However, the intense demand pressure from this support immediately rejected the coin price, indicating a bullish reversal. This V-shaped recovery in price is now charging straight to $500 as new resistance.
The Moving average convergence divergence provides a bullish breakout among the MACD and signal line, projecting a buy signal for crypto traders.
This recent recovery has reclaimed the 200 DMA line, indicating its bullish trend. However, the chart also shows a bearish crossover of the 50 and 100 DMA, inviting more sellers to this coin.
BNB Price Faces Combined Resistance From $500 And Descending Trendline
Source- Tradingview
The Binance coin price is currently trading at the $492 mark, indicating a 21% growth from the $400 support. Furthermore, the price will soon challenge a combined resistance of $500 and a long coming descending trendline.
Though this technical level could provide strong rejection to the coin price and extend the correction rally, a breakout from this overhead resistance could bring an excellent bullish opportunity.
The average directional movement index shows a sudden drop in its value, indicating the decreasing bearish momentum in this coin. However, a further increment in coin price could initiate an upward rally in the ADX slope.
- Resistance levels: $500, $570
- Support levels: $445, $400
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/binance-coin-price-analysis-bullish-breakout-from-500-mark-could-trigger-long-opportunity-in-bnb-coin/