Binance Coin Struggles Below $520 High, Can Bulls Sustain the Recent Rally?

Binance Coin (BNB) price has broken through $480 resistance and reached a high of $520. Today, the cryptocurrency is on the retreat after rejecting the $520 resistance zone. Buyers are expected to break the current resistance, which will push the altcoin to the high of $640.

On the other hand, if the buyers fail to break through the resistance, BNB will fall to a low of $370. Nonetheless, the current resistance at $520 is the historical price level from September 7. In previous price moves, buyers were unable to break through resistance, causing the cryptocurrency to fall to a low of $330. Today, Binance Coin is moving below the recent high. Can the bulls break through the current resistance?

Binance Coin indicator reading

Binance Coin has risen to the 66 level on the Relative Strength Index for period 14. The cryptocurrency is in an uptrend area and above the 50 midline. The cryptocurrency has a bullish crossover as the 21-day line SMA crosses above the 50-day line SMA. This indicates a buy signal. The BNB price is above the 80% area of the daily stochastic. The market has moved up into the overbought zone.

Technical indicators:  

Major Resistance Levels – $700 and $750

Major Support Levels – $400 and $350

What is the next direction for BNB/USD?

Binance Coin has been in an uptrend since September 29. The uptrend is encountering resistance at the high of $520. The uptrend will continue if the resistance is broken. Meanwhile, on October 6, the uptrend showed a declining candlestick tested the 50% Fibonacci retracement level. This retracement suggests that the BNB will rise to the 2.0 level of the Fibonacci extension or to the $638 level. 

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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