Binance's BNB Faces Critical Resistance at $250 - Will It Break Through?
Date: 2023-10-06 Author: Dima Zakharov Categories: CRYPTO PAYMENTS, IN WORLD
BNB's Consolidation Near the Lower Range:
On the weekly technical chart, BNB has been trading within a long-term horizontal support zone at $210, which has held for a remarkable 960 days. The last bounce within this zone occurred during the week of September 11-18, marked by the green icon.
During the same period, BNB encountered resistance at the $350 level, an area that has been tested multiple times, most recently in April. This bounce acted as a catalyst for BNB's descent towards the horizontal support zone at $210.
The weekly RSI (Relative Strength Index) is signaling a bearish trend, sitting below the neutral level of 50 and declining. All these factors point towards a bearish sentiment.
Meanwhile, news has emerged that the world's largest cryptocurrency exchange, Binance, has reached an agreement to sell its entire Russian business to CommEX. The process of transferring user assets to the new platform is expected to take up to a year.
BNB's Forecast: Can the Bullish Pattern Trigger Growth?
On the daily timeframe, there is a more bullish outlook for BNB compared to the weekly chart. Between August 22 and September 11, the price formed a "double bottom" pattern, highlighted by green icons. This bullish pattern often leads to upward momentum.
Additionally, a bullish RSI divergence is visible here. This occurs when a price decrease is accompanied by increased momentum, often signaling the beginning of a bullish trend reversal.
Despite these bullish indicators, BNB has yet to break through the descending resistance line. Such a breakthrough is essential to confirm a bullish trend reversal. In this case, the price could surge by 25% to the horizontal resistance zone at $255.
However, if BNB closes below the horizontal support zone at $210, the "double bottom" pattern may be invalidated. In such a scenario, a price drop of 25% to the support zone at $160 becomes more likely.
On the weekly technical chart, BNB has been trading within a long-term horizontal support zone at $210, which has held for a remarkable 960 days. The last bounce within this zone occurred during the week of September 11-18, marked by the green icon.
During the same period, BNB encountered resistance at the $350 level, an area that has been tested multiple times, most recently in April. This bounce acted as a catalyst for BNB's descent towards the horizontal support zone at $210.
The weekly RSI (Relative Strength Index) is signaling a bearish trend, sitting below the neutral level of 50 and declining. All these factors point towards a bearish sentiment.
Meanwhile, news has emerged that the world's largest cryptocurrency exchange, Binance, has reached an agreement to sell its entire Russian business to CommEX. The process of transferring user assets to the new platform is expected to take up to a year.
BNB's Forecast: Can the Bullish Pattern Trigger Growth?
On the daily timeframe, there is a more bullish outlook for BNB compared to the weekly chart. Between August 22 and September 11, the price formed a "double bottom" pattern, highlighted by green icons. This bullish pattern often leads to upward momentum.
Additionally, a bullish RSI divergence is visible here. This occurs when a price decrease is accompanied by increased momentum, often signaling the beginning of a bullish trend reversal.
Despite these bullish indicators, BNB has yet to break through the descending resistance line. Such a breakthrough is essential to confirm a bullish trend reversal. In this case, the price could surge by 25% to the horizontal resistance zone at $255.
However, if BNB closes below the horizontal support zone at $210, the "double bottom" pattern may be invalidated. In such a scenario, a price drop of 25% to the support zone at $160 becomes more likely.
