Binance Coin has found a new lease of life after snapping its first higher high in 10 days following a 25% hike last week. Although a brief correction was in play, support found above the 50% Fibonacci level can allow BNB to extend its rally towards $600. At the time of writing, BNB traded at $462, down by 3% over the last 24 hours.
Binance Coin 4-hour time frame
Binance Coin faced a rough period between 29 December-10 January, shedding nearly 30% of its value through a chain of lower highs. However, last week’s rally was significant for a couple of reasons. Not only did BNB climb by 25% on the chart but also formed its first higher high in 14 days.
At the moment, BNB was grappling with a correction after investors locked in their gains. at a supply zone between $500-$507. However, support found anywhere above the 50% Fibonacci level would allow BNB to ride its uptrend when the broader market recovers. If BNB remains unscathed as it moves past the aforementioned supply zone, bulls can trigger a quick 12% ascent back to $572. The region above $600 would then become accessible after a round of correction.
Meanwhile, BNB’s bullish structure would take a massive hit if the price slips below $400. A new lower low would then be anticipated at around $319.
Indicators
BNB’s 4-hour On Balance Volume was amidst an uptrend after forming a two-and-a-half-month low on 08 January. The finding showed how aggressive buyers have been over the last 10 days.
Conversely, the RSI painted some more losses before touching the oversold territory. However, such readings are normal during a correction and a subsequent move above 50 would highlight good bullish momentum in the market.
Conclusion
BNB had to hold above the 50% Fibonacci level to extend its present rally to $600. On the other hand, shorting would be the best course of action if BNB slips below $400.