Binance Coin (BNB) has faced some stagnation in its price action over the past week. The coin traded sideways for the most part, but there is still some growth potential if it can break two key resistance zones. Here’s what you need to know:
Binance Coin offers huge upside potential with this setup.
The coin must break above $336 and then $358 before it can rush towards $450
Currently, there doesn’t seem to be enough momentum
Source – TradingView
BNB and the road to $450
A move to $450 in the short term would be a big deal for BNB bulls. After all, the coin has been suppressed for weeks. There was even a small window below the $300 mark. However, there appears to be a path to $450, but two major hurdles must be overcome.
The first is the $336 resistance zone. Currently, BNB is about 10% away from this point. If we see stronger positive action in the market tomorrow, the coin could close the week above $336. Nonetheless, the next resistance will be the most important. BNB needs to find enough momentum to reclaim $358 and consolidate there.
We don’t think the coin has enough upside momentum to reach $358. Instead, it could test $336 before falling to $310 again. There is also some downside potential to be aware of. If the price does continue to trade sideways and fails to charge decisively towards $336, BNB could eventually drop to $286.
Trading strategy for this setup
Well, the first thing to do is to assess the price momentum over the next two days. If BNB is still stuck between $308 and $318, don’t buy.
However, if there is a clear break above $320, the coin is likely to reach $336. After $336, downside risk multiplies, so you’d better get out early. Learn where to buy Binance Coin here.