Despite the Binance coin price slipping under $500, significant support levels below the market suggest BNB will not come back too far. After surging to $520 last week, BNB has taken a moment to pause and is in a period of price discovery, trading around $477. But even in light of the Binance coin (BNB/USD) slowing down in recent days, it’s still 64% higher than it was a month ago. Furthermore, BNB can afford to drop another 17% and still look technically sound.
Even though the Binance exchange is drawing scrutiny from regulators in several jurisdictions, its native coin, BNB, has followed the crypto market higher. This is logical as higher prices improve market confidence, prompting investors to increase their exposure. An ongoing debate amongst cryptocurrency investors is which asset will be the next Bitcoin (BTC/USD) or Ethereum (ETH/USD). With thousands of different coins and tokens to choose from, the options are endless, and this helps the Binance coin price.
The Binance exchange is the world largest cryptocurrency marketplace, trading tens of billions of assets every day. Therefore, it hardly matters how individual assets perform against each other, as long as the market as a whole is buoyant. And at the moment, the cryptocurrency market is undergoing its best spell since May. And whilst BNB is considerably below its $704.62 all-time high, the returning confidence to the crypto market has bolstered its fundamental outlook. As a result, the technical picture has also vastly improved.
The daily chart shows the Binance coin price has been in a clear uptrend for the last month. This has resulted in a rising trend line at $398, just above the 50-day moving average at $397.63. The trend combines with the moving average to make $397.50 a significant support level. Furthermore, ahead of $397.63, the June high of around $430 is the immediate support.
Above the market, Thursday’s $522.70 high is the first notable resistance level. However, if BNB clears this, technically, there isn’t much to stop it from attacking May’s ATH. Of course, BNB is unlikely to jump 50% in isolation. And for this to happen, it will need the broader market to improve upon recent gains and forge higher towards a new crypto market record market cap.
However, as long as the Binance coin stays above $397.63, the trend says the uptrend is intact, and above $430.00, the outlook is even brighter. Only if the price slides below $397.63 does the bullish view become invalid.