The price of Binance Coin has been steadily increasing since August 2017. The BNB price movement has been characterized by rapid increases and gradual decreases. On Apr 20, 2019, it made a high of 48,134 satoshis. The ensuing decrease took it to a low of 25,718 satoshis.
This support area is very significant since it is the level where the upward move in May 2018 ended.
Once the BNB price reached this area, it immediately bounced upward, creating a long lower wick.
Will the price break down or will the support area hold? Below, we are going to analyze the price of BNB in different time-frames alongside technical indicators in order to answer this question.
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BNB Price: Trends and Highlights for July 4
- The BNB price is trading inside a significant support area.
- It is following a descending support line.
- There is a slight bullish divergence developing in the RSI.
- BNB is trading inside a short-term ascending channel.
- Short-term moving averages are turning bullish.
Binance Coin Price: Descending Support Line
Since reaching a low of 29,399 satoshis on March 3, the price has been following the descending support line outlined below.
The Binance Coin price has touched the support line four times. Furthermore, the line currently coincides with the significant support area outlined in the previous section.
Also, there is some bullish divergence developing in the RSI.
While this divergence is quite insignificant, it is more pronounced in short-term time-frames.
Additionally, it is occurring inside a significant support area.
The divergence, however, is not sufficient in predicting an upward move.
Let’s take a closer look in the short-term in order to determine that.
Short-Term
The price of BNB is analyzed at two-hour intervals. The 10-, 20-, 100- and 200-hour MAs are added to the second graph.
In the short-term, the BNB price has been trading inside an ascending channel since touching the long-term support line on June 27.
Furthermore, on July 2, it made an unsuccessful attempt at a breakout.
However, as soon as the price reached the 0.5 fib level of the downward move beginning on June 13, the price began a rapid decrease.
Also, the momentum is turning bullish, at least in the short-term.
A short-term bullish cross transpired on July 3, and a long-term one on July 4.
However, while the BNB price is trading above the 10- and 20- period MAs, it is still below the 100- and 200-period ones.
However, by combining these bullish crosses with the divergence in the previous section and the significant support area, we can come to the conclusion that the price is likely to increase towards the resistance line which is currently at 34,000 satoshis.
Summary
The price of BNB has recently been decreasing until it reached a significant support area. It is currently trading inside an ascending channel. An analysis of technical indicators supports an increase towards the resistance line of the channel. Do you think the price of Binance Coin will begin to increase? Let us know in the comments below.Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile. Images are courtesy of Shutterstock, TradingView.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...
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