Binance Coin (BNB) holds $ 500, may rise again soon

Binance Coin (BNB) is consolidating above the previous resistance area and has confirmed it as support. While there is no sign of a bullish reversal in the technical indicators, it appears that the NBB is trading within a bullish pattern.

Day outlook

The BNB has fallen along with a descending resistance line that has formed since the all-time high of $ 691.8 on May 10.

Most recently, this line rejected BNB three times, on November 7th, 14th and 26th respectively (red symbol). It then continued to hit a low of $ 489 on December 4th.

However, the token bounced upwards and created a long wick at the bottom, which is taken as a sign of buying pressure. Additionally, the rebound confirmed the USD 510 area of ​​support. This area previously acted as a resistance in September and became support after the October outbreak.

However, while price action can still be viewed as bullish, the technical indicators are bearish.

The MACD, formed by the short and long-term moving averages, is falling and is about to move into the negative zone. This means that the short-term MA has slowed down compared to the long-term MA.

The RSI, a momentum indicator, is below 50. Movements above this line are considered bullish, while movements below this line are considered bearish.

As a result, the daily chart is giving mixed signals.

Daily BNB / USDT Chart | Source: TradingView

Current channel

The six hour chart is more bullish as it shows that the BNB is trading within a descending parallel channel. These patterns often include corrective movements, which means an outbreak is likely.

However, the BNB trades in the lower part of the channel. In order for the outbreak to be higher, the NBB must trace the center line of the canal and confirm it as a support.

Similar to the daily time frame, both the RSI and MACD are bearish and bearish.

BNB / USDT 6-hour chart | Source: TradingView

Future movement

Trader @CryptoTony_ sketched a chart from BNB, indicating that the token has triggered a new bullish impulse that will take the token to new highs.

The source: Twitter

For an accurate count, the NBB has to hold above the December 4th low of USD 489 (red line).

While the next upward move (highlighted) clearly doesn’t look like a bullish impulse, this number of waves is likely both previous declines (marked as missing) had a ratio of exactly 1: 1 to structures and indicates that the adjustment is complete.

BNB / USDT 4-hour chart | Source: TradingView

Therefore, for this possibility to remain valid, the NBB must hit a higher bottom within the $ 516-538 support area created by the support of the Fib retracement of 0.618-0.786.

Hourly BNB / USDT Chart | Source: TradingView

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