Binance Coin: How Buyers Can Take Advantage of BNB Volatility to Stay Profitable

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.

  • BNB has seen a bullish breakout from volatility on the daily chart.
  • On the other hand, the social dominance of digital currencies and funding levels have seen a decline.

Since dropping to multi-year lows in mid-June, Binance coin [BNB] Regained bullish momentum to test 11-month trend line support (previous resistance) (white, choppy).

Here AMBCryptos Binance Coin Price Prediction [BNB] for the year 2023-24

Following in the footsteps of King Coin and most altcoins, BNB has struggled to break into a high-volatility phase until recently. With buyers triggering a sharp uptrend in the past two days above the 20/50/200 EMA, the bulls will aim to maintain their edge in the upcoming sessions. At the time of writing, BNB is trading at $320.1.

BNB has seen choppy bullish movement

Source: TradingView, BNB / USDT

While the alternative has been sticking to a sideways trajectory for about two months, buyers finally found a reliable break above the $296 area. The uptrend before this break was triggered by a bullish hammer at the $268 base line in late October.

The resulting reversal led to more than 20% growth until buyers hit snags in the $329 region.

Additionally, during the recent rally, the 20 EMA (red) jumped above the 50 EMA (cyan) revealing increased bullish strength. If the immediate ceiling leads to a major reversal and the current candlestick closes in red, BNB may see an evening star pattern on the daily chart.

The resultant result of the potential test will display the $316 mark. Closing below this mark may lead to further losses.

Alternatively, a possible recovery from this support may pave the way for a reversal rally. Any potential recovery above the $329 ceiling could see its first major test in the $355 region.

To enter into a long position, buyers should wait for a convincing recovery from its current low. The Relative Strength Index (RSI) has entered the overbought territory, hinting at the possibility of a reversal in the upcoming sessions.

Low social dominance and funding levels

Source: feeling

Over the past two days, BNB’s social dominance has fallen sharply. Experimentally, price action has been very sensitive to this action. If price follows that, BNB could see a pullback in the upcoming sessions.

Above that, an analysis of BNB funding rates highlighted a sharp decline over the past two days. This reading suggested a slight bearish slope in the futures market.

Finally, investors/traders need to keep an eye on the movement of Bitcoin as BNB stock has a relatively high correlation to the King Coin.

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