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Price Analysis

Binance Coin “Golden Pocket” at $300, BNB/USD Tracking Higher on Rising Trade Volumes

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Crypto, can, unlike other asset classes, move in sync. Thus, their correlation is beneficial to traders.

This explains why the rise of Binance Coin (BNB) is at the back of a Bitcoin revival.

Notably, the strengthening of BTC lifted most cryptocurrencies from the pits of May, injecting momentum that may feed bulls, angling for the next leg up.

BNB Market Performance

If BNB is on focus, it is hard to bypass the fact that the coin had been obliterated by bears from the second half of May, spilling over to June 2021.

Accordingly, from the daily chart, BNB/USDT faired relatively poorly against the USD.

If anything, BNB bulls are hanging on by a thread.

BNB Price Daily Chart for June 30

Should key support levels fail and prices reverse from the middle BB, the odds of another disappointing leg down could be on the cards.

At present, the 20-day moving average has been a reliable liquidation level.

However, BNB/USDT bulls may break above this barrier, closing above the descending triangle in a buy trend continuation pattern.

If this is the case, BNB prices will complete a W-formation, a bullish pattern that could lift BNB back to April 2021 highs of around $700.

Considering losses of May, which saw BNB shed over 60 percent from peaks, price resurgence could be more intense.

The new momentum would be primarily fueled by determined traders, confident of the Binance ecosystem’s prospects.

BNB is Greater than the Binance Ecosystem

Already, Changpeng Zhao, the CEO of Binance, thinks BNB is way greater than the exchange.

In a tweet, he said:

The tweet, from a price perspective, has been interpreted bullishly. Most comments noted Binance’s role in driving BNB prices and how the coin can be a good bag for holding in the long term.

Specifically, one comment picked out BNB’s deflationary nature and the coin’s historical performance as a solid confirmation of its potential.

BNB Trading Volumes Exploding, upward Momentum buildup

Meanwhile, as BNB/USDT prices grind higher, there is a sharp growth in participation. BNB trading bots are already identifying expansion in trading volumes.

There was an explosion of trading volumes on June 29—5X the usual number:

And June 26—12X the average volumes:

Trading volumes are significant drivers of momentum.

In an uptrend, as BNB is at present, an uptick in participation is a positive indicator of possible higher highs in the making. It could be why traders are angling for entries after sharp corrections in the last two months.

Binance Coin Race to $370

A trader on Twitter expects BNB/USDT prices to soar towards $370 in the short term.

He points out strong support at around $250.

In the daily chart, the zone between $370 and $400 forms a strong resistance level. It is a liquidation line for optimistic buyers.

A close above this mark blows open more opportunities for aggressive traders targeting $700 in the medium-term.

BNB/USDT “Golden Pocket” at $300

On Trading View, one trader, DaCryptologist, notes of a major confluence at $300.

DaCryptologist--BNB

The analyst calls this zone the “Golden Pocket.”

Suppose buyers successfully overcome this resistance line—a confluence of the 10and 200 EMA around the psychological round number ($300). In that case, BNB/USDT prices could lift off towards $345.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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