Binance Coin (BNB) – Maintaining a strong bullish tone despite the last muted session

Binance Coin (BNB) – Maintaining a strong bullish tone despite the last muted session

Posted on Wednesday, July 20 2022 at 9:04 pm GMT+0000

Binance Coin (BNB) has pushed 27% higher over the last week and continues to develop within the one-month-old upward-sloping channel, after breaching the important 2/1 Gann fan angle stretched from the April 4th high.

The price is hovering above the 20- and 50-day simple moving averages, while the former is turning higher and seems ready to perform a positive cross beyond the latter.  The momentum indicators keep feeding optimism that the latest rally could gain extra legs in the coming sessions, as the Awesome Oscillator is accelerating north of its zero mark and the TSI is creeping higher in the positive region, suggesting that upside momentum is still strong.

As things stand, the bulls are confronting immediate pressures from the return line of the channel. If they capture the area beyond that bar, they will then challenge the adjacent May 27th inside swing low of 291.10. Successfully overrunning this too, a continued climb in the coin may hit the 3/1 Gann fan angle, before traders’ attention turns to the May 25th high of 337.00.

It is worth noting that the price has already reacted on the return line of the channel on Tuesday while the IMI has shifted south below its overbought territory, warning that some profit-taking actions could be in play soon.

Therefore, if the price fell below the nearby 2/1 Gann fan angle, downside friction could occur around the tough 245.00 level, linking the June 26th and July 8th highs and the 50-day simple moving average. In a breath distance, the sellers will tackle the 20-day simple moving average at 238.00, before turning attention to last week’s bottom of 216.10. Should negative pressures intensify, the 15-month low of 183.40 may step under the radar.

Briefly, Binance Coin could give up some gains on profit-taking after it jumped over multiple important resistance barriers. That said, a break above the 291.10 would increase confidence in the latest impressive up-leg.