BNB is on the fourth positive swing since touching under the $200 mark for the first time since February 2021. The outlook of this token is a dependent factor on the performance of BNB’s decentralized projects and overall traction on the BNB token. BNB was born out of the need to compete with rapidly growing cryptocurrency exchanges with advanced features, but the major bottleneck of any transaction ecosystem was its ability to tackle data and higher traffic. Binance set out to create its blockchain to address these requirements. Hence, Binance Smart Chain was born to tackle the data processing capabilities of the Binance network and provide a path to maintain a competitive edge.
The primary usage of BNB remains to pay the transaction cost of its network, with the market capitalization reaching $50 billion with roughly 20% tokens remaining to enter the circulation markets.
BNB token has taken a strong rally from June lows with significant positive action. The higher-high price action with each swing seems to have met its fate as a larger resistance of 200 EMA stands in BNB’s further rally.
BNB token has met its first tough resistance, belittling this token for the last ten days. Despite consistent attempts from buyers to breach the 200 EMA level, BNB has remained under a tough constraint. With each attempt leading to more profit booking, the transactional volumes are declining, which indicates buyers are losing interest since selling is a prominent activity for the BNB token. Read our BNB crypto price prediction to know if it is a wise decision to invest in the token or not.
Consolidation between the 100 EMA and 200 EMA, BNB has a strong suit in terms of getting support from its 100 EMA, which could boost the outlook for this token. In terms of resistance, $300 to $325 has become a tough zone for this token to break out. Despite the previous low of $190 turning into a no-touch support level, the current outlook makes it the base level for making a re-entry.
Although such a probability looks dim, considering BNB has just won over another psychological support level of $300. The MACD indicator has created a bearish crossover since this token was getting hammered in the last few days. With RSI already touching the 59 mark from overbought territory, a breakout possibility will be more feasible with RSI being in neutral territory with a price above $300.
BNB token had a positive run, with the first week of August bringing a home run of a decent uptrend. BNB has met its strong resistance level at $337 based on previous price action rejections in May 2022. The outlook would be much brighter after BNB breaches the currently active resistance level.
MACD marks a positive breakout, but the dipping transactional volumes on weekly charts could lead to negative consolidation. The overall candles for last week remained just marginally negative, confirming the fact that sellers are actively booking short-term profits without disturbing the positive vibe created in the last two months.
Source: https://www.cryptonewsz.com/bnb-faces-tough-resistance-near-the-340-usd-mark/