Binance Coin price could be running out of gas to continue its massive rally. While the last five days have been exciting times for holders, the following days will need to be closely monitored. The threat of a downswing looms for BNB, and investors need to foresee the possibility of a pullback that might allow them to add more to their holdings.
Binance Coin price at an inflection point
Binance Coin price has shot up 25% in the last five days after sweeping the $255 support level for sell-stop liquidity. As BNB trades around the $315 level, there is a good chance a rounded top might form below the $319 resistance level.
The last two rallies in May and August are prime examples of how crucial this $319 blockade is. However, a closer look at the Relative Strength Index (RSI), a popular momentum indicator, shows a move above the midpoint at 50. This development from RSI denotes that the bulls are in control as long as the index stays above 50.
This outlook opens the possibility for a retest of the RSI’s midpoint followed by a spike in momentum. Translating that into price action reveals that BNB could pull back to $303. In some cases, this correction could see Binance Coin price revisit the midpoint of the 50% upswing at $283. Both of these levels are good places to open long positions.
As for the upside, Binance Coin price needs to overcome the $336 and $358 blockades to rally 24% and revisit the $445 hurdle. In total, this run-up would constitute a 56% gain for traders that open long positions at $283.
While the outlook for Binance Coin price is on the fence, investors should be wary of a pullback. If the retracement persists, pushing BNB to produce a daily candlestick close below $255 will create a lower low and invalidate the bullish thesis.
This move could further trigger an 8% downswing to $234 for the Binance Coin price.
