BNB Regains Footing After Steep Decline, Finds Support at $385

Binance Coin (BNB) seems to have potentially completed its fourth wave pullback following its jump from the $385 support level. 

BNB Rebounds from Downswing After Finding Support at $385

BNB is finally overcoming its consolidation phase by jumping from its $385 support area. The token recorded explosive growth until August 23 but lost momentum after reaching $515.

At the moment, technical indicators are giving out mixed signals about the currency’s future trajectory. The Moving average convergence divergence (MACD) — a trend that shows the relationship between two moving averages of an asset’s price — is positive but declining. Likewise, the relative strength index (RSI) is higher than 50, but also decreasing. Additionally, charts show that the super trend indicator is also looking bearish.

Despite the uncertainty, some traders are confident about a BNB rally. Pseudonymous cryptocurrency trader Thebull_crypto highlighted recently that the token could reach $2000 by the end of this year.

That being said, BNB will have to overcome the $510 resistance to make any progress further. A decisive jump above $530 would be even better since it will remove any obstacles up to $606.70.

If Binance fails to surpass $510, the token can find support at $449. At the time of writing, BNB is quite close to this target, with a spot price of $429.44. 

The Ongoing Rally and Future Indications

BNB began posting gains on June 22, which continued until it encountered the 0.618 Fib retracement resistance level. Since then the token was on a downswing, which accelerated briefly on September 7.

Recently, however, Binance has found new horizontal support at $385 after its value reached the 0.5 fib retracement level. While its future is unclear due to the conflicting signs, short-term price activity charts are reflecting a bullish sentiment.

Also, its recent consolidation resembles a pullback wave, which is usually followed by a rally and then another correction. In this case, Binance could continue its current cycle of upward movement before another phase of decline.