Binance Coin Breaks above the Downtrend Line and Sets up a Potential Relief Rally
May 31, 2020 at 12:19 //
News
Binance Coin rebounded yesterday to retest the $18 resistance after a month of price tussles. Yesterday, as price broke the downtrend line and closed above it, it signaled the resumption of the uptrend.
Nonetheless, the recent rebound reached the overbought region. The uptrend is likely to continue after a minor retracement.
A Fibonacci tool is used to determine the extent of the upward move. A correction candle body tests the 0.382 retracement level. This implies the crypto will rise and reach a high of 1.618 extension level. In other words, if the bulls break the $18 resistance, the coin will rally above $22 high. Nevertheless, in a subsequent uptrend, the market will reach level 2.618 Fibonacci extension level or $28 high.
Binance Coin indicator reading
After breaking the downtrend line, BNB is facing resistance at $18. This is because the crypto is approaching the overbought region. Presently, the coin is above 79% range of the daily stochastic, indicating that the coin is in a bullish momentum.
Key Resistance Zones: $24, $26, $28
Key Support Zones: $12, $8, $4
What is the next move for Binance Coin?
The crypto has broken the downtrend line; therefore we should expect an upward move of the coin. Presently, it is facing resistance at $18. A break above the current resistance will accelerate the price movement to the previous highs. Incidentally, traders can place a pending order above the $18 support that will trigger price upward. The price is above the EMAs indicating an upward move. A drop below the EMAs will compel the coin to fall.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow