It was another bullish week for Binance Coin as the asset rose from $ 36 on January 22 to $ 44 on January 31. While the token has already been here, on the long-term chart, the potential for another correction is emerging.
At press time, Binance Coin had a market cap of $ 6.9 million, as the coin slipped off the top 1o rankings.
Binance Daily Chart
Source: BNB / USD on Trading View
There are a few patterns that could take shape back to back on Binance’s daily chart. Binance Coin is currently undergoing movement in an ascending channel, possibly lower in the near future. The resistance of $ 47 was not tested last week and currently the token may undergo another test at $ 40.50.
However, if the price falls below the ascending support and has touched $ 37, BNB could complete a three-high pattern, leading to stronger bearish sentiment in the market. Declining trading volume since January 22 is not the best sign for bullish traders. Dealing with volatility going forward remains a top priority for BNB traders at the moment.
Contract justification
Source: BNB / USD on Trading View
The Awesome Oscillator or AO indicated a resurgence of bullish momentum at press time. With the rise of green candles, the worrying presence of buyers is evident.
A similar situation was followed by the stochastic RSI. The chart suggested a tilt in the bullish pressure as the blue indicator led the signal line in the charts. The Relative Strength Index or RSI consolidated a bit below the overbought region, a sign of a bit more determination than the others.
Conclusion
As for dictating a direction, there is no doubt that in the long run BNB will suffer corrections. The altcoin rally story may help BNB maintain more bullish pressure, and swing traders can inject their own volatile action into the charts.
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