BNB has shown significant bullish momentum, with a positive candlestick crossing the 100-day Simple Moving Average (SMA) in a 4-hour time frame. The previous market scenario shows that the digital coin has been rejected several times at the $572 level.
This persistent resistance has paved the way for the bulls to take control and drive the price higher, aiming to reach the $605 resistance level. As market dynamics change, the key question is whether BNB can continue on its current path rising and reached the new goal of $605.
In this article, we will analyze BNB’s recent price movements using technical indicators to determine whether the price can maintain its momentum to reach $605 or fall back to $572.
Technical analysis points to a potential rise to $605
Technical analysis shows that BNB’s price has successfully broken above the 100-day Simple Moving Average (SMA) on the 4-hour chart, indicating a potential bullish trend and increased buying momentum. This view indicates that the price of BNB could continue to rise as long as it remains above the SMA.
On the 4-hour chart, the Relative Strength Index (RSI) signal line has successfully risen above 50% into overbought territory, indicating a possible shift in momentum. This indicates that buying pressure is increasing and the asset may see further upside towards the $605.6 level.
Meanwhile, on BNB’s daily chart, the price is trying to move above the 100-day SMA. A successful crossing above this key technical level could signal potential bullish momentum. If BNB maintains its position above the 100-day SMA, it could trigger a continued uptrend and increased investor confidence.
Furthermore, the RSI indicator is trading above 50%, further supporting the possibility of a bullish trend, indicating buying Busy is currently stronger than the selling pressure. The 1-day chart of BNB shows that a bullish engulfing candlestick has formed after the rejection at $572. This pattern shows a potential trend reversal and could make the $605 target attainable.
Key levels to watch as BNB reaches resistance at $605
BNB is on a bullish trajectory targeting the resistance level of $605. If the price of BNB breaks and closes above the USD 605 level, the rally could continue towards the next resistance level at USD 635 and possibly other levels above.
Nevertheless, a potential downside move could follow if the digital were to reject at $605 and fail to break above, possibly retreating to $572. The $572 level could act as a key support zone, where the price can stabilize or consolidate. However, if USD 572 does not hold, a deeper correction could take place towards lower support ranges such as USD 553.3 and USD 500.
At the time of writing, BNB’s stock is up 2.09%, trading around $585 in the past 24 hours. The cryptocurrency has a market capitalization of over $85 billion and a trading volume of over $1.8 billion, indicating an increase of 2.09% and 3.57% respectively over the same period.
Featured image from Adobe Stock, chart from Tradingview.com