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  • Binance Coin price creates an ascending parallel channel as bulls aim $550.
  • A break above the $425 resistance level will be a big milestone for BNB bulls.
  • Binance coin must close the day above $405 to affirm the bullish narrative.

Binance Coin price opened the day on Monday trading in the red as bears attempted to undo Sunday’s gains. However, the Parabolic SAR flashed positive earlier today calling bulls into the market who are determined to make sure that BNB’s price within the ascending parallel channel.

Binance Coin Price Trades In An Ascending Parallel Channel Aiming for $540

BNB/USD price is currently exchanging hands at $419 following a 61% rally from the July 20 low at $256. This rally saw the largest crypto exchange token flip the 200-, 100-, and the 50-period Simple Moving Averages from resistance to support and spelt out an ascending parallel channel as seen on the four-hour chart.

The rising channel’s lower boundary provided significant support that ensured that bears were did not significantly undo the ensuring gains. On the other hand, bullish pressure was continuously rejected by the upper boundary. Meanwhile, the break above the middle boundary on August 11 is an indication that Binance Coin prediction remains bullish.

Overcoming the immediate resistance at $425 will be a major milestone for BNB bulls as they prepare for the big push. A four-hour session closure above this level will bolster the bulls to push the Binance Coin price beyond the May 17 high around $540 towards the $550 mark.

BNB/USD Four-Hour Chart

Binance Coin Price Four-Hour Chart

Technical indicators on the same four hour-chart shows that BNB will remains bullish in the near term. For example, the upwards movement of the Relative Strength Index (RSI) towards the overbought zone is an indication that the buyers are in control of the Binance Coin price. Moreover, the parabolic SAR reversed from negative to positive today morning adding credence to this optimistic outlook.

Furthermore, the position of the Moving Average Convergence Divergence (MACD) indicator in the positive region above the mean line accentuates this bullish narrative. Note that the MACD could send a buy signal over the next trading sessions affirming the bullish narrative. This will happen when the MACD line (blue) crosses above the signal line (orange).

Looking Over The Fence

Things could go awry if BNB closes the day below the immediate support at $405. If this happens, Binance Coin’s bullish thesis will be invalidated and the asset could slide towards the 50 SMA at $380. A daily closure below the second support level at $389 could see BNB re-test the 100 and 200 SMAs at $360 and $331 respectively.

Traders should note that things have not been rosy for Binance. The exchange has had to deal with bans from  different regulators causing it to scale down several of its operations.

This notwithstanding, Binance remains the largest crypto exchange in the world and is well placed to handle any regulatory landscape.

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