Will the Price of Binance Coin (BNB) Ever Come To a Halt? (Price Analysis for BNB: Mar 7)

Prices have subsequently skyrocketed, but will the rise continue?

Key Highlights For Mar 7, 2019

• The price of BNB was $9.53 on Mar 5.
• It launched a rapid upward move which took it to a high of $15.86 on Mar 7.
• Since Mar 5, the price has increased by 40%.
• The price is possibly trading inside an ascending wedge.
• There is short-term bearish divergence developing in the RSI and the MACD.

Ascending Support Line

The price of Binance Coin (BNB) on Binance is analyzed on 30-minute intervals from Mar 5 to Mar 7. The price of BNB was $9.53 on Mar 5. It has made higher lows since. The ascending support line is created by tracing these successive lows. The dates in which the line was touched are:

• Mar 5
• Mar 6 (twice)
• Mar 7

The support line can effectively act as a floor to price, preventing further downward movement. However, a breakdown below it could initiate a rapid price decrease. At the current time, a breakdown does not appear likely. On the contrary, it appears as if the price of BNB is following this upward trend. As it continues garnering praise from influencers and attention across the crypto community, these price increases may likely continue. One should not eliminate the possibility of rapid price decreases in a volatile market, however.

Possible Ascending Wedge

The price reached a swing high of $12.16 on Mar 5. It made a higher high of $15.78 on Mar 7. Connecting these successive highs gives us the ascending resistance line. The resistance and support lines create a possible ascending wedge. The dates in which the line was touched are:

• Mar 5
• Mar 7

The resistance line can act as a ceiling to price, preventing further upward movement. The higher the number of times a line is touched the higher its validity. Since the resistance has only been touched twice, the line may not be valid. it is possible that the price creates another line. Therefore, the price is possibly moving inside an ascending wedge.

Looking Out For Divergence

The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move. The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market. Combining MACD and RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations. The price reached a high of $12.16 on Mar 5.  It reached a higher high of $15.78 on Mar 7. The MACD and RSI both reached a swing high on Mar 5. However, they both made a lower high on Mar 7. The divergence is not very significant in either category but is more pronounced in the MACD. The prediction arising from divergence can be especially effective when there is a bearish divergence on a bearish pattern and vice versa. If both indicators are in agreement, they can be used to further add validity to the divergence analysis. This is the case in BNB, since the ascending wedge is a bearish pattern, making a breakdown more likely.

Possible Reversal Areas

The price of BNB on Binance is analyzed on one-day intervals from June 2018 to Mar 2019. Resistance and support areas are formed when the price reaches a certain level several times. They can act as a ceiling/floor that prevents the price from moving further in that direction The closest resistance area is found near $17. It is formed by the highs of June 2018. The closest support area is found near $12. Another support area is found near $9. If price were to start a rapid downward movement, these two areas would be likely to provide a reversal. Based on this analysis, the price is likely to move inside the ascending wedge in the short-term, possibly making another high. If the price makes a higher high, such a prediction could be partially validated. If it reaches $17 the prediction would be fully validated. Subsequent corrections resulting in perhaps rapid and significant price drops may follow beyond the short-term. When do you think the price of BNB will finally come to a halt? Let us know in the comments below!

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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.