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Binance (BNB) Targets $600 and Potentially Higher

April 28, 2021

Talking Points:

  • BNB witnesses a fall in bullish momentum following a 15% uptrend.
  • A small retreat towards 520 USD or lower may provide buyers with the chance to buy-in.
  • The supply territory between 569 USD and 603 USD is the only thing keeping BNB in check.

 

BNB’s price is witnessing a slowing of buying pressure as it breaks through a vital resistance obstacle. Bulls can expect BNB to fall back to its immediate support levels before rallying higher.

BNB Could Fall Further Before Reaching New Record Highs.

BNB price momentum is slowing as the Momentum Reversal Indicator (MRI) saw a cycle top signal appear by the formation of a red ‘one’ candlestick on the 6-hour chart. This pattern suggests that a one-to-four candlestick correction will occur.

At the same time as the MRI’s sell signal, the crypto asset also broke through the supply zone’s lower level at 569 USD, giving support to a possible correction soon. The fall may be anywhere between 4% to the bottom of the demand zone at 494 USD.

This retreat will enable bulls to buy up BNB at a discount price for the next leg that targets an upward swing towards highs of around 639 USD.

If BNB can manage a solid close over this level, the bulls could truly take control of the market and drive it towards the 162% Fibonacci extension level at 719 USD.

 

BNB/USDT 6-Hour Chart;

A useful indicator used to see the sentiment of investors is the Daily Active Addresses. A larger volume suggests a bullish outlook as more people are interacting with the BNB network and are buying it at the current price levels.

Between the 20th and the 27th of April, this indicator has fallen by 58% from 313,000 on 130,000 addresses. This dramatic drop would suggest a bearish outlook, implying that investors are leaving the network to allocate their capital elsewhere or taking their profits out.

A minor retreat appears likely, but investors must keep an eye on the extent of the retracement will be. If BNB falls to 472 USD, it will cancel out the bullish momentum and could lead to a further correction towards 444 USD.

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