Binance Cash Steady Above $602 – Why is This Level so Crucial for an Upswing?

The BNB/USD closed at $623.60, after setting a high of $628.60, and a low of $602.00. BNB/USD surged for the third consecutive session on Monday, and its gains were extended as market conditions improved.

Reports have suggested that Binance is engaging in talks with sovereign wealth funds, regarding their taking a stake in the world’s largest cryptocurrency exchange. The chief of Binance, Changpeng Zhao, says that the exchange is facing mounting pressure from regulators, and he believes that investments from sovereign wealth funds will help improve both the way it is perceived, and its relationships with various governments.

Zhao said that the company was in preliminary discussions, regarding the raising of capital from several sovereign wealth funds. It is also working at raising capital for its US affiliate, ahead of a public listing. The growing value of Bitcoin and other cryptocurrencies has boosted the value of the cryptocurrency exchange, Binance, massively in recent months.Furthermore, the prevailing uncertainty in the market, due to the new Omicron variant of the coronavirus, was keeping inflows in the cryptocurrency market higher on Monday. The expectations that Omicron could be more severe than the Delta variant, drove investors out of the stock market and into the cryptocurrency market. Meanwhile, researchers are working hard to find out whether the Omicron variant is vaccine-resistant. The BNB/USD also followed the optimistic, positive trend that currently prevails in the market. This pushed its prices higher on Monday.

Binance cash is consolidating within a narrow trading range of 626 to 602. The downward trendline is extending strong resistance at 626, and it is breaking above this level to expose Binance cash to the 655 level.

Support            Resistance
607.54              634.14
591.47               644.67
580.94              660.74
Pivot Point:     618.07On the support side, a breakout below the 603 level could open up further room until the 575 support. The 50 EMA line supports the coin at the 605 level, demonstrating chances of a bullish bounce-off. At the same time, the RSI and Stochastic RSI also supports an uptrend. Consider taking buy trades over 602 and vice versa. Good luck!