Binance Coin Attempts to Break out Above Long-Term Resistance

Binance Coin Price Highlights

• The BNB price is following an ascending support line.
• There is resistance at ₿0.00265.
• There is support at ₿0.00228 and ₿0.0021.
• BNB is trading inside a short-term descending wedge.

Trader @PostyXBT tweeted a Binance Coin chart that shows the price is strongly rejected by the long-term resistance area at ₿0.00265. In addition, he warned not to buy into resistance, but rather wait for a successful flip before entering the trade.

$BNB

I tried to warn you not to long weekly resistance…

Wait for the level to be flipped. Be patient! pic.twitter.com/BlFU2SwYK4

— Posty (@PostyXBT) February 17, 2020

Will BNB be successful in breaking out above this resistance area? Continue reading below if you are interested in finding out.

Resistance Rejection

The resistance area outlined in the tweet is found at ₿0.00265. The BNB price reached this area last week and created a doji candlestick that rejected the price and caused it to head lower. Even though the price has created a long upper wick, it was easily contained within the body of the previous bullish engulfing candlestick — so it is in no way considered a reversal confirmation.

Daily Binance Coin Outlook

The daily chart reveals two support areas, found at ₿0.00228 and ₿0.0021. The price has reached the first one twice and created long lower wicks each time, a sign of buying pressure. The first support area is the 0.382 Fib level of the entire increase beginning on January 9, while the second one is the 0.618 Fib level of this same increase. Looking closer at the movement, we can see that the BNB price is following an ascending support line — which is currently only slightly below the second support area at ₿0.0021. The BNB price is also trading above the 50- and 200-day moving averages (MAs), which have yet to make a bullish cross. If the price were to decrease to the ₿0.0021 support area, it would validate both the MAs and the ascending support line. Furthermore, the RSI is at 58, so the possible decrease could cause it to bounce at the 50-line. As long as the RSI is staying above the 50-line, we are considering the BNB price movement bullish.

Short-Term Wedge

In the short-term, the BNB price is trading inside a descending wedge. If it continues doing so, it will reach the ₿0.0021 support area by February 19 before possibly breaking out. The RSI is oversold but has yet to generate any bearish divergence, which allows for the price to continue decreasing. To conclude, the BNB price was rejected by a significant support area and has been decreasing since. We believe the decrease will continue at most until the price reaches ₿0.0021 before BNB makes another breakout attempt.