BNB Price Prediction: Binance Coin Powering to $1,000 on Positive Investor Sentiment

Last Updated July 23rd 2021
2 Min Read
  • Binance Coin secures support at $550, allowing bulls to focus on the journey to $1,000.
  • Closing the day above $550 could call more investors into the market, adding credence to the bullish outlook.
  • The RSI hints at a correction coming into the picture before the next breakout.
  • Binance Coin has become the latest leader in price action following increase demand. Investor sentiment continues to soar positively for the exchange-based token. A break above $500 confirms that BNB was ready to liftoff toward $1,000. Meanwhile, a barrier faced slightly under $640 forced bulls to seek refuge at $550.

    Binance Coin Nurtures Uptrend to New Record Highs

    Binance has, over the years, taken BNB through an event referred to as coin burn. The exercise reduces the token’s circulation in intervals to ensure supply thins while demand shoots. The recent upswing in price coincided with the latest coin burn action, which saw investor sentiment improve significantly.

    At the time of writing, Binance Coin teeters at $566 following a correction from the recent record high at $638. Support has been established at $550, thus invalidating the potential downswing to $500.

    BNB/USD Four-Hour Chart

    On the upside, $600 is challenging due to the apparent resistance. A rebound past this level could trigger more buy orders as bulls push toward $1,000. Binance Coin will also need to reclaim the position above the accelerated trend line observed on the four-hour chart to add plausibility to the uptrend.

    The bullish outlook has been validated by the Moving Average Convergence Divergence (MACD) on the same four-hour chart. The MACD line (blue) makes a wide gap above the signal line, suggesting that bulls could sustain the uptrend. In other words, the uptrend is still intact and perhaps BNB needs a little push to trigger the liftoff.

    BNB/USD Four-Hour Chart

    Looking at the Other Side of the Fence

    The Relative Strength Index (RSI) on the four-hour chart hit a wall within the overbought region. A reversal from the area suggests that bears are likely to take control. If declines extend under $550, Binance Coin may freefall to $500 and perhaps retest the significant support at $400 before making another upswing.

     

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