This week, BNB (Binance coin) was trading at $320 versus the US dollar, up more than 20%. If it breaks over the $335 resistance, it might continue to rise.
BNB, the coin that powers the Binance Smart Chain, has had a busy week. BNB has experienced a surprising recovery after falling to two-month lows in the mid-$260s late last week amid broad risk-off across asset classes due to fears over US bank collapses.
In recent days, the BNB price has steadily increased from the $265 support zone. Similar to Bitcoin and Ethereum, the price cleared the $280 and $285 resistance levels to enter the positive zone.
Also, the BNB/USD pair broke above a significant negative trend line with resistance above $284 on the 4-hours chart. The pair even broke beyond the $320 resistance level. It has gained more than 20% in a week and is trading over the $315 barrier level.
While the rest of the crypto market has been stabilizing in recent days, BNB coin has continued to rise, up 8% in the previous 24 hours according to CoinMarketCap. This is most likely due to the revelation that Uniswap, the largest Decentralized Exchange, has deployed on the BNB Chain, significantly increasing the chain's utility. Experts anticipate that this will result in significantly increased on-chain activity.
BNB Chain's anticipated expansion offers numerous substantial benefits, including increased user growth, decreased costs, and the possibility to enter new geographical areas. The change may also give consumers more efficient and cost-effective trading choices. This increases the value proposition for BNB Chain and other major ecosystem tokens like BNB Coin.
BNB is currently showing positive signs based on its technical analysis. It has significantly surpassed all of its major moving averages, indicating a strong recovery after a recent dip below its 200-day moving average at $287.
Furthermore, its recent surge has resulted in a substantial breakout above a downtrend that had been restricting its price action since early February.
As a result, it appears highly likely that BNB will test its annual highs from February, which were in the $330s. Investors are now wondering what lies ahead for BNB once it surpasses these new annual highs.
From a technical perspective, analysts are likely to conclude that a break above the current annual highs would open the door to a potential rally towards November highs, which were close to $400.
It would be a 20% increase from current levels, which is significant but manageable in light of the recent 25% rebound from last week's lows, which took just around one day. But, with BNB's 14-day Relative Strength Index (RSI) approaching overbought territory, a further 20% increase may be delayed.
The price of BNB is presently trading over $230 and above the 100 simple moving average (4 hours). The price is consolidating gains far above the 23.6% Fib retracement line of the upward run from the $300 swing low to the $334 high.
To the upside, an immediate resistance level is approaching $335. The next significant resistance is about $342. The primary resistance is emerging around $350.
A clean break over the trend line, followed by a move above $350, might take the price towards the $365 barrier. Any further rises might push the price up to $380.
With the cryptocurrency market as a whole stabilizing (Bitcoin has been locked near/just around $25,000 for a few days now), BNB might soon enter a phase of stability in the low to mid-$300s. Investors will be watching future macro events, such as the Fed meeting next week, to see if the US central bank's interest rate outlook swings as dovish as the market presently expects.
Uniswap’s listing on BNB surely made a price hype for both the native cryptos. Binance is also looking forward to investing in web3 education which will surely make the prices go beyond the current levels if the market remains less fearful.
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