BNB, the native cryptocurrency of the BSC network, has undoubtedly been one of the winning altcoins scene the bull market began. The price has been able to go from around $200 to over $600 in the space of a year, notching over 200% gains in the process. However, it seems that this outperformance by the altcoin is coming to an end, as an analyst predicts that it is about to hit massive resistance that could stop its growth dead in its path.
BNB Headed For Mounting Resistance
In an analysis that was shared on the TradingView website, crypto analyst Trade City Pro revealed that the BNB token might have to fighting massive resistance soon. The analyst points out that this is a culmination of the bullish rally that the altcoin has seen in the last year, and now bears are maki g their stand.
Related Reading
The analyst points to Bitcoin’s performance during this time as something that could help to pinpoint where the BNB price is headed next. As they explain, BNB risks falling into correction and consolidation after that, making its current level a perilous one for investors.
Mainly, the crypto analyst credits the altcoin’s performance from here on what Bitcoin does next. BNB, which is currently the 4th-largest cryptocurrency by market cap, mirrors Bitcoin’s movements to a larger extent compared to smaller altcoins. So, Trade City Pro’s analysis with respect to Bitcoin is not far off.
For confirmation of whether the BNB token continues to be something to sell or hold, the analyst places the ultimate decision around the $48,000 level for Bitcoin. They explain that a dump below $48,000 would be a sell signal. However, if the Bitcoin price were to maintain strength above $48,000, then they would continue to hold the altcoin.
What Happens In The Event Of A Price Crash?
Should the BNB price crash from here, the crypto analyst has prepared an action plan that could help investors take advantage of it. For example, a Bitcoin crash below $48,000 could send the BNB price below $400, and at this level, the analyst believes buying would be a good move. This is what the analyst refers to as the “Potential Re-Entry” point.
Then, for “Entering After Resistance,” the analyst advises investors to buy the altcoin if the price is able to reclaim $616 and stay above it. This level is important because the $616-$660 range is identified in the analysis as a significant resistance zone, and so beating it is important for the BNB price to continue its rally.
Related Reading: How High Can The XRP Price Go? Crypto Analyst Unveils 6-Month Prediction
Additionally, Trade City Pro adds that the Fibonacci Retracement Levels might offer a level for re-entry into the altcoin. “In case of a correction, the key Fibonacci levels from the last upward wave at 0.5 and 0.618 (between $394 to $430) might offer good entry points. Wait for a reaction or momentum change at these levels before entering,” they stated.
Lastly, the analyst points out that BNB has not really followed the broader market in recent times, which could mean something is coming. “It’s intriguing that BNB seems relatively unaffected by broader market conditions, suggesting Binance might be positioning for something unique,” Trade City Pro said in closing.
Chart from Tradingview.com
Credit: Source link
