Binance Coin rallied 151% since the crypto market crash on March 13 but will next week’s Binance IEO lead investors to push BNB prices even higher?
Since dropping to a 2020 low at $6.34 on March 13, Binance Coin (BNB) has been on an absolute tear, gaining 151.48% to reach a 4-week high at $15.93. Unlike Chainlink (LINK), the recovery has been slow and steady as BNB flipped systematically flipped multiple resistance levels to support.
Aside from the strong oversold bounce that saw many cryptocurrencies snatch back the majority of their March 13 losses, news that Binance exchange will host an IEO for Cartesi starting April 21 could be partially responsible for the most recent leg of the pump to $15.93.
Many Binance IEOs require investors to use BNB to participate so this along with the hype building up around the event could be fueling BNB purchases.
Crypto market daily performance. Source: Coin360
On the daily timeframe, one can see that the current progression took place on multiple days of strong buy volume. Currently the relative strength index is at 60, projecting higher into bullish territory, and the Chaikin Money Flow shows buyers remain interested in BNB.
BNB USDT daily chart. Source: TradingView
The price found resistance at the 61.8% Fibonacci retracement level ($15.87) which is to be expected after such an impressive run but there is also support at $15.33 where there is a high volume VPVR node.
Below this level there is also support at $15 and if a deeper pullback ensued traders will look to $14.06, a point which is aligned with the 50% Fibonacci retracement level. A drop below the 50% Fib level would also break through the rising wedge support but the VPVR shows buying interest at $12.23.
One could also argue that on the daily timeframe BNB is trading within a rising wedge with a target at $19.45 and $22. Given that the 61.8% Fib level is acting as resistance, a likely short-term scenario is a retest of $14.50, followed by a successful push above $15.87 (61.8%) to $17.22 then a breakout to the targets mentioned earlier.
Basically, all the supports are lined up with the Fib levels so traders should mind trading volume and the pattern of higher lows.
BTC BTC daily chart. Source: TradingView
In its Bitcoin (BTC) pair, BNB has rallied 35.88% off its March 13 bottom at 0.0016671 Satoshis and currently the set up looks appetizing. After reaching a 4-week high at 0.0023029 sats BNB pulled back to the 61.8% Fib level at 0.0022557 sats, but surging buy volume suggests bulls have little intention of slowing down.
The daily timeframe shows a strong surge in momentum on the MACD histogram and the relative strength index is steadily pushing above 70. Should BNB price push above 0.0023289 sats then 0.0026273 sats is the next target.
BTC BTC 4-hour chart. Source: TradingView
While the BNB/BTC pair looks tasty on the daily timeframe, there are a few notes of caution presented by the 4-hour chart. Should BNB lose the 61.8% Fib level as support and fall below 0.0022328 sats, there is a volume gap on the VPVR from 0.0022328 sats to 0.0020809 sats a 6.63% drop.
Given that the 4-hour RSI is overbought and the MACD is at its highest level since February, a pullback to the 50% Fib level and possibly the 0.0020642 sats support at the ascending trendline could occur over the short term.
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