• Tue. Jul 16th, 2024

BNB breakout could usher in new buyers. But here is what needs to happen first

Binance Coin (BNB/USD) traded at $337 on Monday, its highest level since June. In our previous CoinJournal analysis, we indicated that BNB was heading to $300, a crucial resistance level. In this bulletin, we find that BNB broke past the resistance on a strong bullish surge. Buyers could now look at attractive buy zones after the breakout.

The latest BNB gains reflect positive optimism around crypto and Elon Musk’s acquisition of Twitter. On the former, cryptocurrency gains were widespread last week as investors speculated a soft stance by the US Fed. On Twitter’s acquisition, there are growing expectations that BNB will get more utility. Binance was one of the key financiers of Elon Musk. Analysts now expect the crypto exchange to play a role on Twitter. 

The elephant in the room now lies around the rate decision by the Fed. The expectation has slowed down BNB, which was trading at $319 at press time. The price is still quite high compared to the October lows of $266. It is also above the breakout zone, suggesting investors are still active on the token.

BNB faces resistance at $330

Source – TradingView

Turning to the technical side, BNB is contained by the $330 resistance. The token broke past it briefly, but the price on the daily candlestick closed lower. The resistance also coincided with very overbought conditions, with an RSI reading of 78. The indicator still shows that BNB is overbought. 

Which way, BNB?

A breakout above $300 makes a bullish case strong for BNB price. However, the cryptocurrency needs to clear $330 to see a new yearly high. Buyers will remain active if the price is above the breakout zone. The Fed’s decision is another factor that will determine the activity of buyers. 

For now, BNB could remain in a correction phase until the technical and fundamental bits align.

Where to buy BNB


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