Binance Coin ($BNB) Signaling Patience
Without further ado, let's get into it.
Check out this H1 chart:
We usually start off with the and then work our way down (if necessary), but in this case it appeared to be a better option to start with the H1 chart.
The reason that we went with the H1 chart is because of how reliable the has been on this time frame.
As you look at chart above, you can see each time that the horizontal line served as either a support or resistance for the price (each ‘bounce’ is shown with a translucent, blue box).
Most recently (just a few hours ago), we saw the price bounce off of the after an apparent re-test from its previous breakout:
The chart above illustrates the price movement that we just described directly above.
Now that we’ve established a strong resistance at $9.75, let’s see where future price action may take us by looking at larger chart resolutions
H4 Chart Resolution for $BNB
We’re going to go ahead and check out a few things for $BNB on the H4 resolution to get a better idea of short-term future price action for the coin.
Zerononcense Reversion Ribbon V2
The reversion ribbon is signaling that this is a solid buy at the moment.
The ribbon is currently green and there is spreading divergence and the current candle (H4 period; regular candles) is reflecting a line green interior, with a green exterior which means that northward price action has been established.
Zerononcense Double Guppy Channel
The ZN Guppy works just like the with color indicators to help determine trend.
In the picture above, we can observe the price at the top of our in the green colored part, which is normally a sign of an impending price decrease and that decrease is fairly immediate in most cases.
However, what’s positive is that the uptrend has been established and validated by the ZN Double Guppy, which is a outlook.
Relative Strength Index(14)
Currently, the (14) on the H4 is gliding near the overbought zone, but it is not quite there yet.
And let’s check out this chart as well:
As we can see above, the downtrend resistance (diagonal line) that we identified above around mid-June.
The small circle at the end identifies the next point of resistance for Binance, which is currently at $10.19.
This is only 2% above where the price stands at currently.
The underlying support at $9.15-$9.20 cannot be ignored.
Weekly Resolution ( BNB/BTC )
As we can see on the chart above, the price is currently teetering dangerously close to falling below the long-term support that has been established on the BNB/BTC pairing.
A fall below here could actually be disastrous for $BNB.
It’s worth noting that there is some serious divergence between the and the actual price action on the chart.
Based on what we mapped out above, it doesn’t look like entering a long position at this point would be safe at all.
However, there’s a possibility that the price is able to break through the long-term downtrend resistance on the price currently. If this does happen, then a long-term position would be preferred.
Disclaimer: Nothing in this article should be construed to be financial advice of any sort. The author is not a financial advisor and does not currently have a position in $BNB or any of its competitors.
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