In the past couple days, we witnessed a heavy price adjustment. The chinese authorities cracking down on cryptos had a big effect on the cryptocurrency market. Many people feared this would lead to a further drop in prices and sold their cryptos. For Binance Coin, investors did the same thing.The BNB token reached a strong buy zone and is on its way back to its previous levels. Should investors Buy BNB today? In this article, we’re going to lay out a strong trade setup that should be profitable in the short-term.
BNB Price Reached a strong Buy Zone
After the first crypto crash that happened earlier in May, BNB prices suffered huge losses like all cryptocurrencies. In fact, prices fell from a high of USD 685 all the way towards a price of USD 230. This was a tough pill to swallow for BNB investors, as hodlers lost around 65% of their portfolio . When prices reached this low, a recovery started to happen and the downtrend ended thanks to a strong buying power. This uptrend made people who bought at that USD 230 price a whooping 80% as prices recovered back to USD 430.
Today, after the second crash that happened few days ago, prices retraced back towards this support area. This is definitely a good potential trade setup.
BNB Price Prediction – Will BNB recover well above 500$ again?
As we just saw in figure 1, prices are definitely rebounding back up toward the USD 430 area. So from a technical perspective, the current price is definitely a good buy as a rebound was just confirmed. From a fundamental perspective, things are looking even better. In fact, Binance just launched their NFT marketplace. This huge news will definitely bring in more users, thus more profits, and in turn, a better price for BNB.
So for BNB to reach a price of USD 500, a confirmation of passing USD 400 is in place. That’s why a good setup for BNB would be the following:
- Entry Price: USD 250
- Stop Loss: USD 220
- Take Profit #1: USD 420 (+68%)
- Take Profit #2: USD 500 (+100%)
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