The BNB price hardly moved during Friday’s Covid-related risk-off, suggesting that buyers remain confident of the cryptocurrency’s prospects.
Binance Coin (BNB) gained around 12% to $611 over the weekend after Friday’s rout failed to inflict substantial damage to its trajectory. Subsequently, BNB is just 13% below its all-time high and respects the uptrend from September. Subsequently, the third-largest crypto has reclaimed its $100b+ market cap, around 1/5th the value of second-ranked Ethereum.
The crypto complex is broadly higher on Sunday as calm returns to markets. Major global equity indices are firmer, as is Crude oil, encouraging risk-on sentiment. As a result, the crypto market has gained almost $300b in value in the last 24 hours. But whilst Bitcoins $4,000 rally to $57,500 has been the biggest driver, the breadth is encouraging, with most top-tier assets higher. However, in my opinion, it’s too early to say if what we are seeing is a relief rally or a fundamental change of trend. Nonetheless, the BNB price action is constructive, and the technicals suggest more gains may be seen in the immediate future.
Binance Coin Price Analysis
The daily chart shows the BNB price is holding trend support at $555. Also, the coin is trading above the 50, 100 and 200-DMA’s, reinforcing its bullish momentum. However, significant overhead resistance at the $705 all-time high remains the biggest obstacle for the bulls.,
Considering the recent strength, I expect the Binance coin to trade with an upside bias above the rising trend line, targeting the ATH. Therefore, the outlook is positive for now.
However, the optimistic view relies on the trend support. On that basis, a close below $555 invalidates the bullish thesis.
BNB Price Chart (Daily)
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