BNB was the best performing altcoin in September after Binance launched an aggressive marketing campaign using several positive announcements like the launch of the Binance LaunchPool which is a different version to the LaunchPad.
The idea behind the LaunchPool is that Binance users can stake their stablecoins and BNB in order to get new coins. This obviously had a massive impact on the price of BNB as users had to directly buy the digital currency in order to get access to the ‘token sales’.
Unfortunately, these types of announcements have a short-lived effect on the price of assets and BNB has already lost practically all of its gains, however, it remains higher than most cryptos.
Yes, BNB price has dropped lower levels but, in comparison to BTC, it is still higher than what it was back in September 16. The trendline is slightly upwards while Bitcoin‘s trendline is clearly going down.
BNB Price Analysis: Daily Chart
One of the biggest indicators for the upcoming bounce of BNB is the defense of the RSI level at 38. This level has been a support point for BNB since April 2020 and has marked all the previous bounces. The last time the RSI dropped to 38 was on September 5 before a massive 85% price boost. Another instance of the RSI dropping below 38 happened on June 27 when BNB bounced towards $19 with a 28% value increase.
Something similar could happen now although the RSI did not drop below 38 just yet, it was fairly close and BNB price seems to be bouncing already. There are two resistance levels nearby in the form of the 26-EMA at $25.14 and the 12-EMA at $25.8. However, because the price of BNB plummeted so fast, bears weren’t able to leave many resistance levels on the way down.
BNB Price Analysis: Weekly Chart
Despite the recent decline in value for BNB, the digital asset remains extremely strong on the weekly chart as the weekly uptrend is intact. Bulls managed to defend the $23 support level where the 12-EMA is. The RSI was overextended and has cooled off now.
In the long-term, BNB bulls are not facing that many resistance levels until $40, the all-time high. With the help of more and better Binance announcements, we could easily see BNB price re-test $40 and possibly break higher.