Binance Coin (BNB) price has broken a short-term resistance and may soon move higher to a longer-term upside.
Binance CEO Changpeng Zhao said the exchange has no exposure to the Silicon Valley bank. But, shortly after, he said that the cryptocurrency exchange would divert the remainder of its $1 billion industry recovery fund to assets such as bitcoin (BTC), ethereum (ETH) and Binance Coin (BNB). However, not all the news from Binance was positive. Payment provider Skrill terminated its relationship with Binance, forcing the latter to suspend its GBP trading from May 22.
Binance Coin (BNB) price trades in a long term range
The weekly time frame technical analysis shows a longer term range between $240 and $360. BNB token price has been trading inside this zone since April 2022, except for the divergence in May 2022 (red circle).
The price has risen since the divergence but has not managed to break out of the top of the range. Instead, it validated the December range bottom (green icon), made a higher low, and has since risen. Last week, the price formed another bullish candlestick.
Despite the failure to break above, the technical indicators are bullish. This is especially visible in the weekly RSI. The indicator broke above a long-term descending resistance line and is now above 50. Therefore, a breakout is the most likely scenario.
If Binance Coin price breaks above $360, it could rise to the next resistance at $445, formed by the 0.5 Fib retracement resistance level (white). However, if the rally loses momentum, there could be a downside break towards the $240 support area.
Binance Coin (BNB) Price May Short-Term Breakout Before Long-Term Breakout
The daily chart provides a more bullish outlook. There are several reasons for this. First, the price broke a descending resistance line that was present since the beginning of February. This is a sign that an upward movement has begun.
Next, the price completed an ABC corrective formation, which was confirmed by a breakout from the resistance line.
Then, the daily RSI moved above 50. Lastly, BNB price retested the minor $285 horizontal zone, which is now expected to act as a support. These are bullish signs which suggest that the growth is expected to continue.
Therefore, BNB price is likely to head towards the top of the $360 range. However, the signals are insufficient to determine whether it will break.
To conclude, the most likely BNB price forecast is a move towards the top of the $360 range. Whether it breaks out or gets rejected can determine the future trend. On the other hand, if BNB price declines below $290, it will invalidate the bullish structure and could catalyze a decline towards $200.
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