Binance Coin Price Analysis: BNB/USD Struggling to Rise Above Resistance

Binance Coin (BNB) Price: Trends and Highlights for June 5, 2019

• Binance Coin (BNB) reached an all-time high price of $36.01 on May 27.
• It is currently trading inside a descending channel.
• There is short-term bullish divergence developing in the RSI.
• It is trading below the 10- and 20-period moving averages.
• There is support near $28.
• There is resistance near $31.

BNB Price in a Descending Channel

On May 26, BNB/USD reached a low of $30.91. An upward move ensued. The price reached a high of $35.39 on May 30. Since then, the price of BNB has been decreasing — trading inside the descending channel outlined below: At the time of writing, the BNB price was trading close to the support line. After touching it for the fifth time, a small upward move ensued. In a shorter time-frame, we can see that the Binance Coin price is trying to break out of the $30 level — which coincides with the 0.618 fib ratio of the drop beginning from $31. The BNB price previously made an unsuccessful attempt to break out above this level on Jun 4. Will this one be successful? Let’s take a look at some technical indicators an try to find an answer.

Technical Indicators

The Binance Coin (BNB) price is analyzed alongside the RSI and the 10- and 20-period moving averages (MA) below: On Jun 4 and 5, the BNB price made successively lower lows of $29.1 and $28.5. During this time, the RSI made higher lows. This is known as bullish divergence and often precedes price increases. However, it is only occurring in short-term time-frames. Furthermore, the Binance Coin price is facing close resistance from the 10-period MA. It is also trading below the 20-period one. On Jun 3 and 4, it has made two unsuccessful attempts at breaking out above it. The latter is currently at $30.5. A breakout above this level could trigger an upward move towards the resistance line of the channel. We stated in our previous analysis that we believe the price is likely to begin a long-term downtrend. This move would not invalidate that assumption. Rather, it would be a short-term increase inside a longer downtrend.

Summary and Reversal Areas

One support and one resistance area are traced for BNB in the graph below: The closest support area is found near $28. If the Binance Coin price decreases at the rate predicted by the channel, it should reach this area on Jun 7. If the current upward move is unsuccessful, this would be a suitable area for the beginning of the next one. On the other hand, the closest resistance area is found near $31. In our previous analysis, we stated that:

The price is likely to decrease within the confines of the channel before it eventually breaks down from it.

Since then, the market movements have supported our assessment. We still believe that an eventual breakdown will occur. Do you think the Binance Coin price (BNB) will break down from the channel?  Let us know your thoughts 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.