Binance Coin Is Overbought as It Is Stuck Below $340 Overhead Resistance

Binance Coin (BNB) price has risen to the high of $337 on August 10. This is the historical level from May 25. On May 25, buyers failed to keep the price above the $337 resistance as it fell to the low of 183. The bulls bought the dips as the altcoin resumed its upward movement.

Today, BNB bulls are retesting resistance at $337, but the upside move has stalled below the $340 resistance zone. If the bulls break the recent high, the market could rise to $360 or $380. However, the upside move is doubtful as the market has reached the overbought zone. If the altcoin breaks the overriding resistance, it will fall to the low of $290 or above the 21-day line SMA. In the meantime, BNB is trading at $329.78 at the time of writing.

Binance Coin indicator reading

The cryptocurrency is at the 75 level of the Relative Strength Index for the 14 period. The cryptocurrency has reached the overbought region of the market. The uptrend is likely to weaken as sellers are emerging. BNB is also above the 80% area of the daily stochastic. The 21-day line SMA and the 50-day line SMA are up, indicating an uptrend. 

Technical indicators:  

Major Resistance Levels - $600, $650, $700

Major Support Levels - $400, $350, $300

What is the next direction for BNB?

Binance Coin is in an uptrend while struggling below the $340 resistance zone. According to the price indicator, BNB will continue to rise to the high of $380. Meanwhile, a retracement candlestick tested the 38.2% Fibonacci retracement level. The retracement suggests that BNB will rise to the 2.618 Fibonacci Extension level or $363.69. However, BNB is still fluctuating below the $340 resistance zone.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.