Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice
The performance of Binance Coin has been impressive for its investors as it was returning around 97% year-to-date. Along with the value of Bitcoin reaching new highs, BNB has been witnessing a sharp rise on the charts. The current value of the digital asset was $30.39, and its price action has been constricted between a small range.
Binance Coin 4-hour chart
Source: BNB/USD on TradingView
The 4-hour chart of BNB highlighted how the digital asset had been in an ascending channel and has now broken out. BNB noted a peak at $32.24 and its present falling price has tested the support at $29.69. However, strong resistance remains at $31.38, and the price has not been able to breach it.
The coin shows signs of consolidation, even though there are adequate amounts of buyers in the market.
Reasoning
The Relative Strength Index was already in the overbought zone as the value of BNB was surging with that of Bitcoin. However, the small correction had helped in stabilizing the price of the digital asset. Despite the correction, RSI was once again pointing upwards, but there was not enough momentum in the market to carry the price higher.
The MACD line has now slid under the signal line which is an indication of traders selling the digital asset more than buying it. As Bitcoin consolidates, BNB might mirror this trend too.
Conclusion
Binance Coin [BNB] has been moving strongly in the market, even though at press time it shows signs of consolidation. This consolidation followed the surge in prices across the altcoin market and now that the price has seen a correction, and the coins current trading price is now trying to hold onto the current level.
