Binance Coin (BNB) Price Prediction: CZ's 'gm” Tweet Fails to Impress, Range Breakout Unlikely

Binance Coin [BNB] was trading at the 10-week-old range highs once more. The early release from jail of former Binance CEO Changpeng Zhao was expected to

Binance Coin [BNB] began the new week on a bearish note from the 10-week highs. Despite former Binance CEO Changpeng Zhao being released from jail early and tweeting “gm,” BNB dropped by 3.9%. However, technical indicators pointed toward a bullish trend.

Binance Coin began 2 October at the 10-week highs. After hitting highs of $598 on 29 September, BNB encountered resistance at a crucial price level. Despite the early release from jail and a morning tweet, BNB dropped by 3.9% over the next six hours.

CZ’s morning tweet saw BNB drop on the price action charts from $598 to lows of $574. This morning activity also saw BNB’s price action trade within the range highs. Range highs were last seen on 22 June when BNB hit highs of $604.

After hitting lows of $464 on 9 June, BNB began to consolidate within a price range. This range extended into September and saw BNB attempt to break out past the upper bound on multiple occasions.

However, BNB faced resistance at the $600 price level and was unable to break out past the range highs. This morning, BNB did manage to break out past this upper bound, but technical indicators hinted at a bullish trend.

Relative Strength Index (RSI) remained above the neutral line at 50 and in bullish territory. However, the RSI formed a bearish divergence on the daily chart. This divergence signaled a retracement from the current price levels.

On the other hand, the On Balance Volume (OBV) was unable to test the July highs. This lack of buying volume was last seen in mid-August when BNB faced a strong rejection at the $600 level.

Together, the technical indicators showed that a rejection from the range highs was the more likely scenario.

Morning activity also saw BNB’s price action begin to approach an important liquidation level. According to Hyblock, the 3-month liquidation heatmap showed that the $621-$635 area was a “magnetic zone” for the price.

Before this, it was the $600-$614 area that attracted prices to it before a pullback to $585. In this way, a false breakout past the range highs to reach $635 before a retracement was a distinct possibility.

Traders should be prepared to take profits as BNB approaches these levels and wait for a pullback and a buying opportunity.

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