TLDR
- BNB price surged above $525 resistance, eyeing $550 breakout
- Price consolidating gains, trading above $535
- Short-term rising channel forming with support at $540
- BNB broke above 20-day EMA resistance at $524.50
- Weakening buying pressure suggests potential retest of breakout level
Binance Coin (BNB) has made significant gains in recent days, breaking through key resistance levels and sparking discussions about its potential for further growth.
The cryptocurrency, which serves as the native token of the Binance ecosystem, has seen its price surge above the $525 mark, a level that had previously acted as a strong resistance point.
According to recent market data, BNB’s price initiated a fresh increase, pushing past the $525 and $535 levels. This upward movement brought the token to test the $550 resistance zone, with a local high forming at $549.5.
Following this peak, the price underwent a slight correction but has managed to maintain its position above the $535 level and the 100-hour simple moving average.
Technical analysis reveals the formation of a short-term rising channel, with support established around $540 on the hourly chart. This pattern suggests that despite the correction, the overall trend remains bullish for the time being.
Traders and analysts are closely watching the $548 and $550 levels as the next significant resistance points. A clear break above $550 could potentially open the path for BNB to test higher levels, with some speculating on possible targets at $562 or even $580.
However, the sustainability of this rally has come into question. While BNB successfully broke above the 20-day exponential moving average (EMA) at $524.50, which had been acting as a resistance since August 26, there are signs that buying pressure may be weakening.
The Chaikin Money Flow (CMF), an indicator that measures the flow of money into and out of the market, has been trending downward and has dropped below the zero line.
This bearish divergence suggests that the recent price increase may not be supported by significant buying volume.
The weighted sentiment for BNB stands at -0.52, indicating a prevailing negative outlook in the market. This negative sentiment, coupled with the weakening buying pressure, has led some analysts to speculate that BNB might retest the 20-day EMA in the near future.
