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Amid the recent downfall, the Binance coin price breached the local support of $250. Losing this support, the altcoin is poised for a longer correction which could lead to its market value to $200. However, here are three reasons why you should buy Binance coin(BNB).
Source- Tradingview
Better price sustainability
Amid the ongoing bear trend, which tumbled the market leaders Bitcoin and Ethereum by nearly 80%, the Binance coin has managed to hold its ground comparatively well. From the all-time high of $690.93, the BNB price tumbled by 65.07% and currently trades at the $240 mark.
Thus, rather than showing an evident downtrend, the weekly BNB chart resembles a sideways rally. Moreover, the chart shows later movement in support by $200 support.
Growth in RSI indicator
The Relative Strenght index(RSI) projects the speed and magnitude of the coin’s recent price action indicating the underlying strength. Thus, for the last two swing lows in BNB price, the RSI slope shows a sharp rise, indicating the increasing buying pressure at lower support.
Thus, this bullish divergence increases the probability of price reversal from $200 support.
The $200 level stands as strong support.
The weekly time chart showcase the $200 as a strong accumulation zone. The BNB price has shown several lower price rejections at this support, indicating the high buying pressure at this support.
Moreover, last week the BNB price displayed a long wick rejection at $200, indicating the demand pressure persists, and the prices are likely to rebound from this support.
Current price action
The Binance coin price witnessed an aggressive outflow due to FUD surrounding its Financial reports. As a result, the sudden downfall breached $250 support, offering sellers additional resistance to lead prices lower. Thus, the $250 support breakdown may encourage further downfall to $200 support in the near future.
Furthermore, if the negative sentiment for Binance eased out, the BNB price should bounce higher and surpass the $250 mark to rechallenge the $360 swing high.
- Resistance Levels: $252 and $275
- Support Levels: $220 and $190
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
