Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice
With new IEOs and DeFi products being launched continuously, Binance Chain and Binance coin have both been doing well. The token has evolved from being just another ERC20 token on ETH to a coin with its own chain and a DeFi ecosystem built around it.
At press time, Binance Coin was trading at $30, with the cryptocurrency ranked 6th on CoinMarketCap’s charts. While the price has noted a good surge since early-September, this might not continue for long.
Binance Coin 4-hour chart
In the short-term, we can expect BNB to surge higher, yet still remain intact, and within the bigger rising wedge pattern. So, BNB is bullish short-term, however, bearish if one looks at the rising wedge pattern.
Supporting this bullish short-term scenario were the RSI and OBV indicators. In addition to that, we have the support line at $29.69, which was a major resistance when BNB tried surging higher in early-October. Hence, going forward, expecting this level to hold against the bears/sellers is natural.
As for the indicators, the RSI indicator and the price seemed to have formed a bullish divergence on the 4-hour charts, with the OBV pointing to good volumes for this region.
Since an increase in volume with the RSI rising doesn’t sit well with the technicals, we can expect BNB to head higher. A surge of 9% can be seen as BNB bounced from $29.69.
Hence, longing BNB at this level would be optimal to leverage good profits. Hence, these are the important levels to keep an eye out for,
- Entry – $29.02
- Take-profit [tp] – $31.9, $33.5 [if you are feeling optimistic but with a trailing stop-loss]
- stop-loss – $27.54
The total risk-to-reward ratio with a target at $31.9 would be 2.02R.
As for the long-term outlook, BNB needs to breach the bottom line of the rising wedge to confirm a bearish breakout. Following that, we can expect it to head to these immediate supports levels – $29.02, $25.96, $21.86, etc.
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