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

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.

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:

#bnb > @binance (CEX)

— CZ 🔶 Binance (@cz_binance) June 30, 2021

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 current supply 169.4M (deflationary. No more new BNB generated).
16th quarterly BNB burn soon !!

3rd Feb 21, BNB was USD 52.

30 Mar 21, BNB was 274

12 Apr 21, BNB was 638 (15th BNB burn pre event effect)(12x from 3rd Feb !)

10 May 21, BNB was 691 ATH

BNB to the moon !

— Zach (@Zach_Lim_WL) June 30, 2021

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:

Unusual #volume spike in $BNBUSDT

– 9,140,557 USD worth of $BNB traded in the last 5 mins.
– 5 times the average volume in $BNB – $USDT pic.twitter.com/ChoPcV2Gke

— Volume Alerts (@TraderWisdom) June 29, 2021

And June 26—12X the average volumes:

Unusual #volume spike in $BNBUSDT

– 9,140,557 USD worth of $BNB traded in the last 5 mins.
– 5 times the average volume in $BNB – $USDT pic.twitter.com/ChoPcV2Gke

— Volume Alerts (@TraderWisdom) June 29, 2021

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.

#BNBBUSD TA Update:#BNB now bullish as per 1H chart.
$290 is good support so above this level I am Targeting $315/$344/$370

Support: $290/$270
Resistance: $315/$344/$370#Cryptocurency #BNBTC #bnbusdt #Altcoins #Trade #Bitcoin #Binance #BinanceSmartChain pic.twitter.com/Xoz5egY440

— Crypto Patel (@CryptoPatel) June 30, 2021

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.

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.