BNB stops bleeding when it bounces off the support

Binance Coin (BNB) ended its correction by bouncing off the horizontal support area of ​​$ 385.

While a short-term rally is likely, the direction of the long-term trend remains unclear.

Long term movement

The BNB’s weekly chart gives contradicting signals.

While the token has risen since the fall in May, last week’s rejection could be the first lower high from the all-time high of $ 691.8.

In addition, the indicators also give mixed signals. MACD is in positive territory but is decreasing. Likewise, the RSI is above 50, but it is also falling. In addition, the super trend line is bearish (red line).

Weekly BNB / USDT Chart | Source: TradingView

Trader @Thebull_crypto sketched a chart from BNB and said the token could soar to $ 2,000 before the end of the year.

Given mixed signals from the weekly timeframe, we need to look at the lower timeframes to see if BNB will hit a new all-time high.

BNB rejected

The NBB has been on the rise since June 22nd. The upside continued until August 26th when the token hit a high of $ 518.9.

However, it has since declined after being rejected by the 0.618 fib retracement resistance. The downward trend accelerated on September 7th.

After the decline, the BNB rebounded when it hit the 0.5 fib retracement support at $ 385, which is also the horizontal support area. However, despite the rally, the technical indicators are all bearish on the daily time frame. The MACD is falling and the RSI is below 50.

As a result, there are signs of a conflict between price action and technical indicators.

BNB / USDT daily chart | Source: TradingView

BNB shows up

The shorter-term six-hour chart is bullish. It shows that the BNB broke out through a parallel channel on August 11th and has continued to hit the high mentioned above.

Then the next drop is like a pullback that includes wave 4.

If true, the token will make another upward move before being corrected.

The two most likely targets for the peak of movement are between 550 and 558. The target is determined using the external fib retracement level of 1.27 (black) and the 0.618 wavelength of 1-3 (orange).

The higher goal would be $ 662.

BNB / USDT 6-hour chart | Source: TradingView

You can see the BNB price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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