Binance Coin price analysis: A rally to $350 is likely

• Updated

Binance Coin could continue its upwards movement in the near term

Binance Coin made a strong comeback in July, rising by 29%. Although there was some profit-booking seen at the end of the month, buyers have resumed their purchases as of 3 August 2022.

According to a report by news and research website CoinJournal, some 21 exchanges have ceased operations so far in 2022. However, the larger crypto exchanges have continued to increase their market share. Binance has increased its spot-trading market share from 45% at the start of the year to 49.7% in June, according to data from research firm CryptoCompare. 

Binance has been taking steps to improve its regulatory compliance. Binance founder and CEO Changpeng Zhao said in a tweet that the exchange had “spent more than $1bn on compliance efforts with a high % pass rate.”

Also as part of its compliance drive, the largest crypto exchange recently announced the launch of Binance Account Bound, the first-ever Soulbound Token (SBT) on the BNB Smart Chain. The token is non-transferable and can be minted only after completing KYC (know your customer) requirements. The token will work as a Binance identity and can be used and verified by third-party protocols for various uses.

The concept of SBT was first introduced by Ethereum co-founder Vitalik Buterin in a paper entitled Decentralized Society: Finding Web3’s Soul on 10 May of this year. SBTs are non-transferable tokens that represent “the commitments, credentials, and affiliations of ‘Souls’,” and “can encode the trust networks of the real economy to establish provenance and reputation,” the paper said.

Will efforts to improve regulatory compliance boost buying in Binance Coin? Could Binance Coin go up? Read the BNB price analysis to find out.

Binance Coin weekly chart
Binance Coin weekly chart. – Credit:

Binance Coin price technical analysis: Weekly chart

Strong buying near $200 levels started a relief rally in BNB’s price which has reached the overhead resistance at the 20-week Exponential Moving Average (EMA). This is an important level to keep an eye on, because the bears are expected to defend the 20-week EMA aggressively.

But if the BNB/USD pair does not give up much ground from the current level, it will suggest that traders are not rushing to the exit as they anticipate a move higher. If bulls push the price above the 20-week EMA, the rally could reach $350, where the bears may again mount a strong defence.

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On the other hand, if the price turns down from the current level and breaks below $239, it will suggest that the sentiment remains negative and bears are selling on rallies. The pair could then drop to $200.

Binance Coin daily chart
Binance Coin daily chart – Credit:

Binance Coin price technical analysis: Daily chart

BNB’s price is facing resistance near the psychological level of $300. The pair turned down from $301 on 29 July but a positive sign is that the bulls did not allow the price to break below the 20-day EMA. This indicates that the sentiment has turned positive and traders are viewing the dips as a buying opportunity.

The upsloping 20-day EMA and the Relative Strength Index (RSI) in the positive territory indicate advantage to buyers. The bulls will now make one more attempt to push the pair above $300. If they succeed, the recovery could reach the overhead resistance at $350.

Contrary to this assumption, if the price turns down from the current level or the overhead resistance and breaks below the 20-day EMA, the short-term advantage could tilt in favour of the bears. The pair could then decline to the 50-day Simple Moving Average (SMA).

Binance Coin: Buy or sell this week?

The bulls purchased the dip to the 20-day EMA and will attempt to push the pair above the overhead resistance at $300. If they manage to do that, Binance Coin’s price analysis suggests a rally to $350. This bullish view could be negated in the short term if the price turns down and slips below the 20-day EMA.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision. 

Binancecoin to US Dollar
Daily change
Low: 317.04
High: 332.57

Further reading

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