Binance Coin (BNB) has faced some stagnation in the price action over the past week. The coin has largely traded sideways, but there is still some potential for growth if it could break past two crucial resistance zones. Here is what you need to know:
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Binance coin offers significant upside potential with this setup.
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The coin must smash past $336 and then $358 before any run towards $450
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At the moment, it doesn’t seem like there is enough momentum for this
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Source – TradingView
BNB and the road towards $450
Hitting $450 in the near term will be a huge thing for BNB bulls. The coin has after all been suppressed for weeks now. There was even a small window where it fell below the $300 mark. However, it seems there is a path toward $450, but two major hurdles must be overcome.
The first one is the $336 resistance zone. At the moment, BNB is around 10% away from this. If we see more robust positive action in the market tomorrow, then the coin will likely close the week above $336. Despite this, the next resistance will be the most important one. BNB will need to find enough momentum to reclaim $358 and consolidate there.
We do not think the coin has enough upward momentum to reach $358. Instead, it will likely test $336 before falling once more towards $310. There is also some downside potential to note. If indeed the price continues to move sideways and fails to make any decisive run towards $336, BNB could eventually tank to $286.
The trading strategy for this setup
Well, the first thing to do would be to assess price momentum in the next two days. If BNB remains to stagnate between $308 and 318, then don’t buy.
However, if there is a clear break above $320, it is likely the coin will hit $336. After $336, downside risks increase exponentially, so you better exit early. Learn where to buy Binance Coin here.