Binance Coin Breaks above the Downtrend Line and Sets up a Potential Relief Rally

Nonetheless, the recent rebound reached the overbought region. The uptrend is likely to continue after a minor retracement. 

A Fibonacci tool is used to determine the extent of the upward move. A correction candle body tests the 0.382 retracement level. This implies the crypto will rise and reach a high of 1.618 extension level. In other words, if the bulls break the $18 resistance, the coin will rally above $22 high. Nevertheless, in a subsequent uptrend, the market will reach level 2.618 Fibonacci extension level or $28 high.

Binance Coin indicator reading 

After breaking the downtrend line, BNB is facing resistance at $18. This is because the crypto is approaching the overbought region. Presently, the coin is above 79% range of the daily stochastic, indicating that the coin is in a bullish momentum.

Key Resistance Zones: $24, $26, $28

Key Support Zones: $12, $8, $4

What is the next move for Binance Coin?

The crypto has broken the downtrend line; therefore we should expect an upward move of the coin. Presently, it is facing resistance at $18. A break above the current resistance will accelerate the price movement to the previous highs. Incidentally, traders can place a pending order above the $18 support that will trigger price upward. The price is above the EMAs indicating an upward move. A drop below the EMAs will compel the coin to fall.

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