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%)
Stay Ahead, Stay Updated
You might also like
More from Binance
Binance has its own stablecoin called Binance USD (BUSD). This token suddenly rose to become the 11th biggest cryptocurrency by …
If you're looking to know how to earn money with cryptos, this is your complete guide to staking on Binance, …
Binance Smart Chain suffered a $31M suspected rug-pull today from Meerkat Finance resulting in direct losses of ~$14M BUSD and …