Binance Coin (BNB) price has been consolidating within a descending parallel channel after recording a local top around the $338.3. However, the BNB price found support, and now a recovery rally is in motion.
Also Read: Binance Coin price approaches critical mass, 18% move ahead for BNB
Binance Coin (BNB) price is trading with a bullish bias, up nearly 7% after finding critical support due to the confluence between the 50-day Simple Moving Average (SMA) and the horizontal line at $291.60.
The Relative Strength Index (RSI) shows rising momentum, with a pending buy signal that will be activated once the RSI crosses above its signal line (yellow band).
Increased buying pressure could see the Binance Coin price extend the gains past the $220.00 level before reclaiming the $338.30 range high, last tested on December 28. Such a move would denote a 10% climb from current levels. In a highly bullish case, the gains could extrapolate for BNB price to reach the $360.00 psychological level
BNB/USDT 1-day chart
On the other hand, if profit taking kicks in after the 7% climb, the BNB price could lose all the ground covered, potentially retesting the confluence support. A break and close below $291.60 would invalidate the bullish thesis.
In the dire case, the downside could continue, with Binance Coin price testing the midline of the channel at $280.00. The worst possible case could see the altcoin extend the fall to the $260.30 level, 15% below current levels.