Cryptheory – Just Crypto

Cryptocurrencies are our life! Get an Overview of Market News

Three factors that can lead BNB price to appreciate 18%

3 min read

The price of BNB, cryptocurrency issued by Binance, operates practically stable in the region of US$ 295. Unlike other cryptocurrencies that have lost supports over the past week, BNB has managed to hold above the 38.2% retracement level.

According to analysts, this level is very important as it maintains growth potential for investors. In this sense, the market is still optimistic with a potential appreciation of up to 18%, which would lead BNB to exceed US$ 360.

Factors that can lead BNB price to appreciate

Currently, there are three factors that support this view and that could strengthen BNB’s bullish move. These factors are trend reversal, retests of supports and an inverted chart pattern.

Three factors that can lead BNB price to appreciate 18%

Source: TradingView.

Trend reversal and search for resistance

The continued recovery started when the price of BNB appreciated from $184.54 and rose 84% to reach the $337 mark. At this point, it looked like the price was about to break through and reach the expected $360.

However, on July 29, this bullish run broke through an intermediate resistance trend line that had limited bullish growth since November 2019. That is, BNB overcame the main obstacle that limited higher appreciations in its price.

Thus, a bullish breakout of this resistance gives an early signal of a trend reversal. It is not possible to define when this will happen, but the possibilities of new high rallies tend to grow.

Next support trend line

While BNB showed recovery at various points in time, this did not occur on a continuous basis. There were several price pullbacks, which replenished the bullish momentum for further gains. Each fall in the price of BNB served as a springboard for further valuations.

However, connecting these higher lows, it appears that the BNB price is responding to a new trendline of support.

Furthermore, the recent correction stopped at this support trend line and the price reversed with a morning star candle. So, until the trendline is intact, traders can maintain a bullish bias.

Inverted head-shoulder pattern

The BNB price has been struggling to overcome the $337 resistance for over three months, forming a range-limited rally. However, price consolidation with strong resistance has shaped an inverted head and shoulder pattern (the wavy shapes in the chart above).

Also, the recent correction reinforced the pattern’s right shoulder formation. This pattern, unlike the classic shoulder-head-shoulder, indicates an uptrend.

To reinforce this perception, the price of BNB has risen 6.61% in the last three days, starting a small bullish rally. If bullish pressure persists, the coin’s price is expected to rise by 13.8% from the current price, reaching $337.

Under the influence of the pattern, buyers should break the neckline resistance to accelerate the bullish momentum. Thus, the resulting rally could push prices towards the $500 mark at the height of the move.

On the other hand, if selling pressure persists in the market, the move could cause a new devaluation. In this sense, BNB could face a correction of up to 7%, going below $275, which would invalidate the bullish thesis.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

Leave a Reply