Before a 15% rally, BNB tightly coils for its price forecast on Binance Coin

26 October 2023, Thursday
Before a 15% rally, BNB tightly coils for its price forecast on Binance Coin

Binance Coin (BNB) Price Analysis: Will the Uptrend Continue?


Consolidation Breakout


Binance Coin (BNB) price has made a breakthrough in its ongoing consolidation phase. If this momentum continues, BNB could continue its upward trend and face key obstacles.


Recent Price Movements


For about three months, Binance Coin price has been consolidating between $200 and $220. Occasionally, it reached the $228 hurdle. However, between October 19 and 24, there was a sudden increase in buying pressure, causing BNB to rise from $210 to a high of $238.


Pullback Expected


As investors started to take profits from this rally, Binance Coin price retraced by almost 7%. Currently, it is trading at $226. It is likely that this pullback will continue, allowing BNB to test the $220 support level. At the same time, the Relative Strength Index (RSI) is hovering around the 50 mean level.


Opportunity for Buyers


This pullback will give an opportunity for buyers who were waiting on the sidelines to accumulate Binance Coin. As a result, BNB price is expected to start rising again and overcome the $228 resistance level. The next target would be the $253 hurdle, which would represent a 15% gain.


Potential Risks


While the current market conditions support a bullish outlook for Binance Coin price, a sudden increase in selling pressure could be detrimental for the bulls. If BNB drops below $220, it could threaten a retest of the critical support level at $212.


Invalidation of Bullish Thesis


If Binance Coin price closes below the $212 support level on a daily candlestick, it would invalidate the bullish thesis. In such a scenario, BNB could drop by 5% and revisit the swing low of $202 from October 9.