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Cryptocurrencies

BNB Price prediction: Buying pressure Builds below Key Resistance

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Written By: Elliott Laybourne

Oct 20, 2021, 05:49 BST 05:49

Summary:

The BNB price is holding close to the psychological $500 level as the bulls attempt to punch through the significant resistance overhead.

The BNB price is holding close to the psychological $500 level as the bulls attempt to punch through the significant resistance overhead. Binance Coin (BNB/USD) is trading at $484.5 (-0.73%), higher by 25% in October and +1,220% year-to-date. The exchange token has a market cap of $80.4 Billion, making it the third most valuable cryptocurrency, behind Bitcoin and Ethereum.

Binance Coin has outperformed its altcoin peers lately. Many of the top-ranked cryptos have flatlined over the last two weeks, despite BTC surging to $64,000. Binance Coin has gained more than 50% from last months $316 low. As a result, the BNB price has hurdled the major moving averages and looks increasingly likely to continue the impressive run of form. However, the price is running into supply approaching the September high at $543. Furthermore, if BNB fails to advance beyond $518 in the coming sessions, it will leave a bearish double-top on the daily chart, which could derail the recovery.

Binance Coin Price Analysis

The daily chart highlights Binance Coin’s bullish trajectory. Furthermore, the 50, 100, and 200-Day Moving Averages (DMA’s) between $398 and $424 provide substantial support. Nonetheles, clearing the horizontal resistance at $518 is key for the bullish momentum to continue. Decisive clearance of the $518 level opens the door for an extended rally towards the all-time high of $705. However, some indicators show signs of fatigue.

The Relative Strength Index (RSI) reads 65.24, suggesting the BNB price is close to overbought. Additionally, the indicator appears to be rolling over which may indicate a slowdown in momentum. Also, the trading volume is suspiciously light and doesn’t suggest large-scale buying. However, if Binance Coin clears $518, it should attract momentum chasing buyers. Taking this into account, I am neutral on BNB below $518, Bullish above, and bearish below $397. However, for now, I expect the coin to remain in the $424-$518 range.

BNB Price Chart (Daily)

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This post was last modified on Oct 20, 2021, 05:49 BST 05:49

Written By: Elliott Laybourne

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.