Traders to expect the sideways trading to culminate in an upward move past $20.00.
The reaction to the inverted head-and-shoulders pattern is the strongest trend indicator.
BNB/USD has a looming upside breakout on Wednesday following the formation of an inverted head-and-shoulders pattern. The formation of this pattern indicates a trend continuation, in this case, Binance Coin is likely to extend the gains above $20.00. The gains come after a trend reversal occurred when the price fails to make any significant movement past $20.50 in the first week of April. The price dipped under both the 12 exponential moving average (EMA) 4-hour and the 26 EMA 4-hour.
Chart Source: TradingView
A bottom was formed marginally above $16.50 giving way for a rebound and the completion of the head formation of the pattern. A correction to the upside pulled above the 12 EMA and 26 EMA. This move saw the bulls’ confidence increase as they took more positions. BNB/USD touched $20.00 before reversing slightly to the region above $18.50. The price is currently sitting comfortably above the EMAs while trading at $19.75.
The reaction to the inverted head-and-shoulders pattern is the strongest trend indicator the traders need to look out for. However, they must watch for a sustained breakout above $20.00 before they can get confident that the move will test $21.00.
Also Read: Bitcoin [BTC] Price Analysis: Bitcoin to Re-test $5546 Level One Final Time?
Considering other indicators like the moving average convergence divergence (MACD) show that BNB/USD will continue with the current sideways trading in the coming sessions. The indicator signal at +0.28 is horizontal while the divergence is constant.
Binance Coin [BNB] Key Technical Indicators
12 EMA 4-hour: 19.55
26 EMA 4-hour: 19.28
MACD 4-hour: +0.28
Path of least resistance: Upwards
Resistance 1: $20.00
Resistance 2: $20.50
Resistance 3: $21.00
Support 1: $19.50
Support 2: $18.50
Support 3: $16.50
BNB Price Prediction: Traders to expect the sideways trading to culminate in an upward move past $20.00 and even correct to $21.00. Binance Coin is among the few coins that are likely to break above its all-time high.
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