Binance Coin (BNB) is gearing up for another attempt at moving above its September highs.
The upward movement is supported by both the price action and readings from technical indicators.
BNB
Since May 23, BNB has been moving upwards, following an ascending support line. Therefore, the line seems to be measuring the rate of increase for BNB.
So far, the token has reached a high of $518.9, doing so on Aug 26. However, it has been decreasing since. The decrease served to validate the $511 area as resistance. This is the 0.618 Fib retracement level, which most commonly acts as resistance. Therefore, BNB has to reclaim it in order for the trend to be considered bullish.
On Sept 26, the token bounced at the ascending support line once more. This served both to validate the line once more and put an end to the ongoing decrease.
Technical indicators in the daily time-frame have also turned bullish. The RSI, which is a momentum indicator, has bounced at the 50 line and is moving upwards. The 50 line often acts as a determinant for the direction of the trend. The previous cross above 50 transpired on July 27 (green icon) and preceded the entire upward movement.
The MACD is positive and increasing. The MACD is created by short- and long-term moving averages (MA), and the reading means that the short-term trend is faster than the long-term one.
Finally, the Supertrend is bullish (green circle). The Supertrend is an indicator that uses absolute high and low prices in order to determine the direction of the trend. Since BNB is above the line, the indicator is considered bullish.
Therefore, readings from the daily time-frame suggest that the trend is bullish.
Ongoing breakout
The shorter-term two-hour chart supports the continuation of the upward movement. It shows that BNB has already broken out from a descending resistance line, putting an end to the previous decrease.
More importantly, the token has moved above the 0.618 Fib retracement resistance area. While the initial rejection on Oct 7 (red circle) cast some doubt on the upward movement, its subsequent reclaim alongside the breakout from the descending resistance line support the possibility that BNB will move higher.
Wave count
Cryptocurrency trader @24KCrypto outlined a BNB chart, stating that the token has begun a long-term wave five that will take it to a new all-time high price.
In order for the count to remain valid, BNB has to hold above the Sept 26 low at $320 (red line). As long as it is doing so, it is possible that the current increase is part of wave three of a bullish impulse. Wave three is often the sharpest, therefore the rate of increase would be expected to accelerate soon. This also fits with the readings from technical indicators.
A decrease below the line would invalidate this potential count.
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