Binance Coin Reaches Record High of $720: What’s Next for BNB?

Binance Coin Reaches Record High of $720: What's Next for BNB?

Recent Price Movements

Binance Coin (BNB) climbed to an all-time high of $720 during the trading session on 6th June before witnessing a minor correction. Data from CoinMarketCap showed that at press time, the altcoin had exchanged hands at $706, having declined by 2% from its all-time high.

Demand for BNB Surges

Prior to 3rd June, BNB had trended within a horizontal channel. This channel is formed when an asset’s price consolidates within a range for an extended period. The upper line of this channel forms resistance, while the lower line forms support. For BNB, the bears created resistance at $632, while the bulls defended the coin’s price at $518, which formed long-term support.

Due to the surge in buying activity in the last month, BNB rallied above the upper line of this horizontal channel on 4th June to close at $686. The bulls have since maintained the uptrend as buying momentum has outweighed selling activity in the BNB market in the past few days.

Market Indicators

This was gleaned from readings from the coin’s momentum indicators:

  • Relative Strength Index (RSI): At the time of writing, BNB’s RSI was 77.82. This value suggests that buying activity outpaced profit-taking activity among BNB traders.
  • Money Flow Index (MFI): BNB’s MFI stood at 75.91, further indicating strong buying activity.
  • Chaikin Money Flow (CMF): BNB’s CMF rested above the zero line at 0.20, signifying market strength and positive money flow.
  • Elder-Ray Index: BNB’s Elder-Ray Index was 115.7. This positive value indicates that bull power is dominant in the market.

Future Predictions

BNB might rally to exchange hands at $754 if buying pressure is sustained. However, if this is invalidated and profit-taking activity surges, BNB’s price might fall under $700 to $690.