Binance coin (BNB) has managed to stay above the important $202 support level against the US Dollar, and is now showing signs of recovery, with the potential for a rally if it moves above $220.
Binance Coin Price Shows Signs of Recovery
After experiencing a significant decline, BNB price has successfully held above the key support at $202. The price reached a low of $204 before initiating a decent increase, following the footsteps of Bitcoin and Ethereum.
There has been a breakthrough of the $208 and $210 resistance levels. Additionally, the price has surpassed the 23.6% Fibonacci retracement level of the main decline from the $234 swing high to the $204 low. Furthermore, there was a significant breakthrough of a major bearish trend line with resistance near $213 on the 4-hour chart of the BNB/USD pair.
Currently, BNB is trading above $214 and the 100 simple moving average (4 hours). On the upside, the price is encountering resistance near the $219.50 and $220 levels.
“The 50% Fibonacci retracement level of the main decline from the $234 swing high to the $204 low is also near $220 to act as a hurdle. A clear move above the $220 zone could send the price further higher. The next major resistance is near $228, above which the price might rise toward $235. A close above the $235 resistance might set the pace for a larger increase toward the $250 resistance.”
If BNB fails to surpass the $220 resistance, it could experience another decline. The initial support on the downside is near the $214 level and the 100 simple moving average (4 hours). The next major support is near $210. Further downward movement could lead to the price dropping towards the $204 support level, and potentially even reaching the key support at $202.
Technical Indicators:
- 4-Hours MACD – The MACD for BNB/USD is gaining momentum in the bullish zone.
- 4-Hours RSI (Relative Strength Index) – The RSI for BNB/USD is currently above the 50 level.
Major Support Levels: $214, $210, and $202
Major Resistance Levels: $220, $228, and $235
Source: BNBUSD on TradingView.com
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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