Binance coin price could be on a tear this week
- Binance coin price is already up 13% for the week, as tailwinds emerge late Monday.
- BNB price could be set up for an additional 14% gain throughout the week.
- Expect current caps to hold as markets detox a bit from dollar strength.
Binance coin (BNB) is flipping its course and is pulling a 180 on markets as tailwinds emerged late Monday evening near the end of the US trading session. With price action being supported by tailwinds from the equity markets, several components within financial markets are relaxing a little bit after an extended period of pressure and dollar strength. With this deflation comes a period of easing in which cryptocurrencies get the chance to rally, putting up some nice returns for traders in the short run.
BNB price set up for a profitable week near-term
Binance coin price was no different from other cryptocurrencies held to ransom by the dollar strength that kept a firm grip on several asset classes like equities and bonds in financial markets. Several asset classes seem to be coming off a bit from their expanded levels as the dollar weakens, opening up room for breathing. With this, cryptocurrencies and equities have some room to rally, and traders are jumping at the opportunity in full force.
BNB price thus could see some severe underpinning of its price action with no real fades nearby as traders will want to use this limited window of opportunity before the dollar strength kicks in again. With already 13% on the docket, and another 14% in the prospect, the rally looks to be half done as $300 nears. Once popping back above that level, another $28 is up for grabs towards $328.80, where the 200-day Simple Moving Average (SMA) will act as a price cap again as it did on August 10 and 11.
BNB/USD Daily chart
Risk to the downside comes with the fact that a floor has been identified around $272, where price action bounced previously. In case no new highs can be printed, the risk could be that the price simply keeps bouncing as it makes lower highs. This points to a possible break as bears use the moves to sell the rally and eventually pierce through the base level at $272, to drop to $220.