In recent weeks, most of the cryptocurrency market has been doing poorly except for a few select altcoins. One of them is Yearn.finance (YFI), which was discussed in an earlier article. The other large-cap cryptocurrency doing well is Binance Coin (BNB), as the token of the cryptocurrency exchange dropped to $18 and immediately ran to $32 within one week.
This is a rally of 80% in a matter of days and, therefore, ripe for technical analysis to gauge where BNB may be headed next.
Crypto market daily performance. Source: Coin360
Binance Coin faces final resistance before test of all-time highs
BNB/USDT 3-day chart. Source: TradingView
The 3-day chart of Binance Coin is showing a massive surge in the past week and some beautiful technical analysis.
Due to the dropdown of Bitcoin (BTC), the price of Binance Coin dropped severely, as the level at $18 saw a test of this support.
This level at $18 continued to hold support, after which a massive jump occurred. This push upward was partially caused by the announcement that Binance is entering the DeFi space as well as the CEO of Binance urging Ethereum-based projects to join the new Binance Smart Chain platform.
As a whole, the bounce from $18 towards $25 caused the price to break through the $25 resistance level.
The chart shows that the next resistance zone is found between $32-35 and that’s the area that’s currently being tested by the fifth-ranked cryptocurrency by market capitalization.
If the price of Binance Coin breaks above this red area, a test of the all-time high levels seems very likely. However, it’s the first time that the cryptocurrency would test this red area, which means that a breakout in one-go is less likely as sellers should step in.
BNB/BTC breaks above 100-day and 200-day MAs
BNB/BTC 1-day chart. Source: TradingView
The BTC pair of Binance Coin shows a precise construction that was broken to the upside.
A similar scenario was seen around December 2018 with a breakout above the 100-day and 200-day moving averages (MAs) caused the price to rally substantially.
In recent weeks, a similar scenario occurred as the MAs lined up nicely together and were flipped from resistance to support.
Additionally, the crucial resistance zone at 0.00022500 sats finally broke, which led to another chain reaction and continuation of the price to surge higher.
BNB/BTC 1-day chart. Source: TradingView
The price of Binance Coin has been hovering against the 0.00022500 sats range for more than twelve months, as several tests failed to break through the resistance zone.
The recent test led to a strong breakout, resulting in the start of a new impulse move — a very similar price move as the one at the beginning of 2019.
Can Binance Coin rally towards $35?
BNB/USDT 2-hour chart. Source: TradingView
The 2-hour chart of Binance Coin is showing a clear structure. The crucial support area at $28 was held as support, after which a new higher high was printed.
However, the previous resistance zone at $31 should continue to sustain support. If that occurs, a potential target of $35 is on the tables. If the structure in itself continues to paint an upward trend, a possible test of the all-time high is also likely.
But if the price of Binance Coin drops below $31, traders should expect a test of potential support zones at $28 and $26.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
