- Summary:
- The Binance Coin price jumped 50% after testing the long term trend, but robust resistance and regulatory troubles may cap the rally.
The Binance Coin price jumped 50% after testing the long term trend, but robust resistance and regulatory troubles may cap the rally. After reaching a four-month high of $544 on the 3rd of September, Binance Coin (BNB) plummeted. By the end of the month, the exchange token had dropped 43% back to a rising trend that has underpinned the 2021 bull market.
After successfully holding the uptrend, Binance Coin jumped 40% to $460, hurdling the critical moving averages in the process. However, trading volumes are incredibly light, which indicates investor apathy. Furthermore, countries are queuing up to stop the Binance exchange from doing business. As a result, CEO Changpeng Zhao said the exchange needs to become more centralized to appease regulators, encouraging users to switch to decentralized Exchanges, like Uniswap (UNI).
BNB Price Forecast
The daily chart shows the Binance Coin price bounced from trendline support at $310 last month. The resulting rally has forced the price above the 100 DMA at $377, the 200 at $401, and the 50-day at $428. If Binance Coin holds the support of the 200 DMA, it may extend towards the September high at $534. However, BNB is struggling to clear the resistance of the June high at $433. Additionally, the Relative Strength Index is rolling over, which may indicate the rally is exhausting.
Currently, Binance Coin is trading at $433, just above this support of the 50-day moving average at $428. Should BNB lose the $428 support, the 200 DMA at $401 comes into focus. If the price slips below the 200 DMA, I would consider this an extremely bearish development which could herald a steeper decline back to trend support.
Binance Coin Price Chart (daily)
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