Disclaimer: The findings of the following analysis is the sole opinion of the writer and should not be taken as investment advice
The rallying Bitcoin market has been driving prices of the altcoins. Binance Coin has been among the top altcoins in the crypto market and it has been noting a sharp rise in its price. At the time of writing, BNB was being traded above $39 and was witnessing a push and pull among traders.
BNB one-hour chart
Source: BNBUSD on TradingView
The above chart indicated that the price of Binance Coin has been moving in an ascending channel. The price was moving between the resistance at $39.12 and support at $36.86. However, as the price moves along, the selling pressure has been increasing and it could pose an opportunity for traders to short the coin.
Reasoning
The Relative Strength Index has already reached the overbought zone for the digital asset. As the price increased along the price scale, the RSI peaked and has now entered the overbought territory. This signaled a fall might be imminent for the value of BNB to stabilize.
Whereas, the Awesome Oscillator was still noting the high buying momentum in the market. The tall green bars were an indication of the buying pressure in the market, however, as the value reached 1, there could be a reversal of trend visible soon.
Position
Entry: $39.86
Stop-Loss: $40.6
Take-Profit: $38.79
Risk-to-Reward: 1.46
Conclusion
BNB’s value has surpassed the resistance at $39.12 and has now positioned itself in the overbought zone. A correction may stabilize the price in the short-term and the indicators have been noting signs of a reversal. Traders might be able to take profit at $38.79, as the price falls under the support at $39. However, the next support was visible at $36, and increased selling pressure could push the price even lower.
