There’s a high probability that Binance Coin (BNB) will go higher. The bullish pattern the cryptocurrency has maintained supports this view. It has held its position above the $510 mark, changing the previous resistance to Support. This action flies against the minimal presence of bullish indicators on the technical indicators.
BNB has been going down since it hit its record price of $691.8 on May 10th. The charts show its recent attempts to change its direction to an upward trajectory failed on three occasions at the $500 mark on May 7th, 14th, and 26th. This resistance sent the asset down to $489 on December 10th.
But afterward, it went up, causing a bullish pin bar on the charts and signifying the presence of more buyers. This situation has strengthened the $510 mark as a support zone. In September, it acted as resistance, then turned to support the next month.
Presently, the price action indicates an upward curve. But the technical indicators seem to be lagging as they have failed to show this. One sign is that the MACD is going lower and in negative territory. The short-term moving average is lower than the long-term counterpart.
The Relative Strength Index (RSI) is under the 50 mark, indicating bearish movement. A move above 50 is needed to confirm a long move. The daily chart bears evidence of this with the lack of direction.
We have to look at a lower timeframe, specifically the 6-hour chart, to see the presence of this bullish movement. BNB is in a descending parallel channel. The corrective moves in the channel indicate a bullish breakout is a probability.
But there are obstacles to be conquered for this to happen. The BNB’s positioning in the channel’s lower part is one of them. For the bullish run to happen, the cryptocurrency has to be in the center of the channel, making it a support zone. The RSI and MACD indicators are in a downtrend, mimicking the daily chart.
For the bullish move to become a reality, the BNB must maintain its positioning over the $489 mark. A dip below this mark will invalidate the expected bullish run. One can see this in the chart below.
Based on wave theory, the chart shows a new bullish impulse, signifying the token’s readiness for a move higher.
The highlighted up-move might not have all the characteristics of a bullish impulse. But the bearish moves before it are similar, being stopped at the same places. These moves are prevalent in corrective movements, indicating the asset price is gearing for a change from its former decreasing direction.
So to see the expected bullish charge, we need BNB to have higher closing points on the charts around the $516-$538 area. This support area is on the 0.618-0.786 Fibonacci levels on the 1-hour charts.