Binance Coin (BNB) had been trading in a tight range over the last 30 days with a key level under pinning the price. The bearish sentiments arising from the regulatory challenges the Binance crypto exchange has been witnessing around the globe have added healdwinds to BNB’s price.
At the time of writing, the exchange coin was hovering around $249, up 1.1% on the day and 2.39% over the last seven days. Binance Coin has drop 23% over the last three months and 13.2% over the last six months.
With a market capitalization of $38.8 billion, BNB remains the third largest non-stablecoin cryptocurrency by market capitalization, according to data from CoinMarketCap.
Can BNB Price Breach $250 To Begin A Recovery?
Early last month, the US Securities and Exchange Commission charged Binance and its CEO Changpeng Zhao for violating securities laws and operating a “web of deceptions.” Binance coin responded negatively to the news tumbling 29% from highs of $310 in a sell-off that was halted by buyer congestion around the $220 zone.
There have been several attempts at recovery but these have been frustrated by the $250 barrier. As a result, BNB has been trading in sideways price action oscillating between the $220 foothold and the $250 resistance zone.
At the time of writing, bulls were making another attempt to push the price above $250. If they succeed to produce a daily candlestick close above this level, it will be the first sign of sustained recovery for the token.
If this happens, bulls will be bolstered to push BNB higher with the first line of resistance coming from the 50-day Simple Moving Average (SMA) at $260. Additional barriers lie at $290 and $295 where the 100-day and 200-day SMAs lie respectively.
Overcoing these barriers would open the path for a return to the June highs above $310. Such a move would represent a 24.56% ascent from the current price.
BNB/USD Daily Chart
Binance Coin’s positive outlook was supported by the appearance of three green candlesticks on the daily chart, an implication that buyers are re-entering the market.
The Relative Strength Index (RSI) was facing upwards and the price strength at 53 suggested that the bulls had began taking control of the price.
On the downside, all the major moving averages were facing down, indicating that the market sentiment still favors the downside. As such, a daily candlestick close below $250 would mean that there is still more room for the downside.
BNB price could therefore move from the current level toward the major support level at $230 or revit the $220 swing low. In a highly bearish scenario, the altcoin may drop toward the $180 demand zone.
