Binance Coin is in a buildup phase as it approaches a daily supply zone between $505-$480. Should bulls find strength for a move above $445, another brief rally would be on the table. At the time of writing, BNB traded at $423, up by 2.4% over the last 24 hours.
Binance Coin 4-hour Time Frame
Binance Coin is awaiting its next big move after recording a 20% increase between 3-5 February. The token has traded between $440 and $408 over the last 5 days, with no breakouts in either direction.
Considering that BNB’s buildup phase came right after a mini bull run, buyers maintained a slight edge over proceedings. A rally extension above $445 would likely see BNB challenge a supply zone between $505-$480. Since the daily 200-SMA (not shown) bolstered the resistance barrier, further progress on the chart would need to be backed by a bullish Bitcoin.
For the moment, Bitcoin was trading below $45K and a correction was a possibility. Hence, a southbound move for BNB must not be discounted. A close below the 4-hour 50-SMA (yellow) at $408 would sound warnings bells in the market. Investors must even brace for a deeper correction if BNB slips below the 61.8% Fibonacci level. The next ideal support would be available around $360, marking an 11% decline from $397.
Indicators
Investors can keep a close eye on the 4-hour RSI for potential breakouts going forward. Bulls were holding the RSI around 50 after the index moved downwards from 75. A rebound above 65 would be a sign of strength, suggesting that BNB’s uptrend was very much alive and kicking. However, a dip below 45 would mean that sellers were ready to take control.
For the moment, the 4-hour MACD preserved its bullish crossover but still traded below equilibrium levels. In such cases, bullish narratives are often discounted until the index recovers above its half-line.
Conclusion
The Binance Coin market was for the bulls to lose. BNB was fresh from a 20% surge and its price had established healthy support at $410. Once the price closes above $445, another 7%-12% surge was likely.