BNB Eyes $605 After Breaking Key Resistance: Can The Bulls Maintain Momentum?
July 31 2024 - 9:30AM
NEWSBTC
BNB has demonstrated significant bullish momentum, with a positive
candlestick crossing the 100-day Simple Moving Average (SMA) in the
4-hour timeframe. The previous market scenario reveals that the
digital currency has faced multiple rejections at the $572
level. This persistent resistance has cleared a path for the
bulls to take charge and drive the price higher aiming at the $605
resistance level. As market dynamics shift, the key question is
whether BNB can continue its current upward trend and hit the new
target of $605. In this article, we will analyze the recent
price movements of BNB using technical indicators to determine
whether the price can sustain its momentum to reach $605 or decline
back to $572. Technical Analysis Indicates Potential Rise To
$605 Technical analysis reveals that the price of BNB has
successfully crossed above the 100-day Simple Moving Average (SMA)
on the 4-hour chart, indicating a potential bullish trend and
increased buying momentum. This position indicates that BNB’s price
could continue rising as long as it remains above the SMA. On the
4-hour chart, the Relative Strength Index (RSI) signal line has
successfully risen above 50% into the overbought zone, signaling a
potential shift in momentum, which suggests that buying pressure is
increasing and the asset might experience further upward movement
towards the $605.6 level. Meanwhile, on the daily chart of
BNB, the price is attempting to break above the 100-day SMA. A
successful cross above this key technical level could signal
potential bullish momentum. If BNB maintains its position above the
100-day SMA, it might trigger a sustained uptrend and greater
investor confidence. Also, the RSI indicator is trading above
50%, further supporting the possibility of a bullish trend,
indicating that buying pressure is currently stronger than selling
pressure. BNB’s 1-day chart shows that a bullish engulfing
candlestick has formed following the rejection at $572. This
pattern demonstrates a potential trend reversal and could make the
$605 target achievable. Key Levels To Observe When BNB Reaches $605
Resistance BNB is on a bullish trajectory, targeting the $605
resistance level. If the price of BNB breaks and closes above the
$605 level, it may continue its rally toward the next resistance
level at $635 and possibly other levels beyond. Nonetheless, should
the digital asset face rejection at $605 and fail to break above
it, a potential downward move could follow, possibly retreating to
$572. The $572 level could act as a key support zone, where the
price may stabilize or consolidate. However, if $572 fails to
hold, a deeper correction could occur to lower support ranges such
as $553.3 and $500. As of the time of writing, BNB’s price has
risen by 2.09%, trading at approximately $585 in the past 24 hours.
The cryptocurrency boasts a market capitalization exceeding $85
billion and a trading volume surpassing $1.8 billion, indicating an
increase of 2.09% and 3.57% respectively over the same period.
Featured image from Adobe Stock, chart from Tradingview.com
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