Binance coin (BNB) – ٌReflected an initial rosy sign for a turnup in the pricePosted on Wednesday, July 6 2022 at 9:31 pm GMT+0000
Binance coin (BNB) started July on a positive note after halting the last week’s decline some distance above the mid-June low of 183.40, and recently crossed above the 20-day simple moving average.
Although the 20- and 40-day simple moving averages are still negatively aligned, the former is setting the stage for an upturn, signifying that the recent price rebound could be more than temporary.
In more encouraging signs, the Awesome Oscillator is ramping up to meet its zero-neutral threshold and the RSI is attempting to jump over its equilibrium line, both suggesting that the positive impetus is gaining power.
The price is approaching the 23.6% Fibonacci retracement level at 248.29 of the April – June freefall, which managed to halt the mid-June recovery. Of note, the 40-day simple moving average is also converging towards that region. Hence a decisive violation here is expected to pave the way straight to the 38.2% Fibonacci level at 288.43. Running higher, the bulls will likely target the May 25th top of 323.70.
Alternatively, if the aforementioned resistance zone proves a hard nut to crack, the price will initially seek shelter around the 20-day simple moving average and the most recent low of 205.70. By snapping these barricades, sellers are expected to push through the June 18th low of 183.40 and stretch the current bearish structure initially towards the 161.8% Fibonacci extension level of the mid-June corrective wave at 142.77.
In brief, the refusal to return to the 18-month low of 183.40 could be a rosy sign for a turnup in the price, but negative risks haven’t completely evaporated yet. A durable advance above 248.29 could reduce skepticism and motivate additional buying.