We have recently seen a sharp drop in the crypto market and the primary cryptocurrency has found temporary support in the $40,000 range, but what can we say about Binance coin?
As analyzed by Amb Crypto, Binance Coin found demand in the $413 to $417 region and has seen a gain of nearly 10.6% in a 40-hour period since then.
The $480 to $486 zone will be Binance Coin’s next resistance area.
The long-term support level for BNB was at $417, while the $413 level represented a 61.8% retracement for BNB’s move from $254 to $669. On lower timeframes, the $455 area (cyan box) is a place where sellers were strong and were able to force a quick move from $455 to $415.
In the last few hours, Binance Coin reacted positively, managing to reach the region above $455, with this, it had a trend reversal, exiting the downtrend and starting the uptrend in the short term.
In the scenario where BNB does not see a candle close below $450, the price is likely to resume its upward march. The $480 and $486 levels showed short-term targets for the price.
The entire $470 to $510 area did not see much trading activity on BNB, this signals that short traders were much stronger. Only the $461 level could force a bounce. Therefore, it is possible for BNB to quickly rally to $510 if it can rise above $470 with strong volume.
BNB last week touched down at the price of $413 twice, the MACD formed a higher low while the price closed at a lower low. This bullish divergence was followed by the MACD forming a bullish crossover and rapidly rising above the zero line.
The CMF indicator also showed capital flows to the market.
Trading volume was high as BNB rallied north and this would need to be the case once more if BNB breached the $470 level. Short-term momentum is on the side of the bulls and an old supply zone of $455 seemed to be geared towards demand.
This offered a buying opportunity and a high risk trade for reward considering how thin the $470-$510 area has been in terms of trading volume in the fall.