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Technical Analysis

BNB surges while PARCL tests resistance

Published: Dec 5, 2024
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As BNB surges into price discovery and Parcl tests key levels, the market is offering prime opportunities. Let’s explore $BNB’s trajectory and $PARCL’s breakout setup.

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Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.


BNB:

Market context

As expected, $BNB has continued to deliver a stellar performance, aligning with our prior analysis. Demand emerged precisely from the $622 level, reinforcing its importance in price action.

BNB remains one of the few assets to reclaim its all-time highs, and it is now trading into price discovery. This exceptional strength further cements its position as a dominant force in this cycle, with significant capital and demand driving its momentum.

1. Weekly candlestick chart of Binance Coin (BNB) highlighting key levels at 622, 720, and 790, showing bullish price discovery.

BNB price action

In our previous analysis, $720 was highlighted as the key resistance to break. As anticipated, this level saw volatile price action, with sharp movements both above and below it. Initially, the price pushed back into the range after touching $720 but swiftly reclaimed the level. This reclaim was followed by consistent demand, turning $720 into a potential support zone.

Currently, $BNB is trading above $720, showing signs of strength and a clear intention to maintain its trajectory in price discovery. The price action around $720 has solidified its significance as a pivot point for future moves.

2. Daily candlestick chart of Binance Coin (BNB) showing price action around 720 resistance turned support with clear breakout structure.

Playbook

Deep buy zone:

$622–600: Previously highlighted accumulation zone where demand proved strong. This zone remains a critical level to monitor for future retracements.

New support potential buy zone:

$720: The level has flipped from resistance to support, making it a key area to watch for sustained demand.

Strategy:

If the price holds above $720, it’s worth looking for long setups around this support.

With BNB in price discovery, targeting becomes less precise. A measured approach would involve positioning on dips and managing trades with a focus on broader market momentum.

Cryptonary’s take

BNB has delivered exactly what we outlined in our last analysis. The $622 level provided the expected demand, while $720—a key resistance—has flipped into support after volatile price action and a solid reclaim.

With BNB now in price discovery, we’re in unknown territory. While specific upside targets are less defined, this is undoubtedly a low-risk play in the broader scheme. This performance underscores why BNB is a cornerstone asset in this cycle, standing out for its resilience and strength.

Stick to the levels, let the market dictate your approach, and remember: $BNB is leading by example in this cycle. Price discovery may be unpredictable, but the solid groundwork laid around $622 and $720 provides clear guideposts for strategic plays.


PARCL:

Market context

Like clockwork, Parcl has delivered exactly as we anticipated. We’ve been spot-on with our levels, playing this one to absolute perfection. The $0.40 buy box we identified in the last analysis came into play beautifully, with the price moving into the zone—albeit with a slight deviation—before seeing bids flood in to drive a solid move higher. This confirms the strength of our analysis and the market’s respect for these levels.

Now, as expected, the price has slowed down into the $0.55 region, which is showing signs of selling pressure. This isn’t a bad thing at all—it’s actually a good signal. This means that $0.55 is establishing itself as a critical resistance, and when we break out above it, it will carry even more weight as a bullish signal for Parcl’s future trajectory.

3. 4-hour chart of Parcl (PRCL) highlighting the 0.40 buy zone and 0.55 resistance level, showing potential breakout scenarios.

Current scenarios

We’re at a pivotal point. Price could play out in two major ways: Retest of $0.40 Buy Box: Price could come back down to our initial buy zone around $0.40. This remains our accumulation zone, and we’ll leave it on the table as a high-confidence level for adding positions.

Break and Retest of $0.55: The second scenario is a clean breakout above $0.55, followed by a retest of the level. This would be an incredibly bullish signal and set the stage for Parcl to push into higher territory with strong momentum.

4. A 4-hour chart of Parcl (PRCL) displaying possible bullish and bearish breakout scenarios above 0.55 or retrace to 0.40 buy zone.

Playbook

Accumulation strategy:

$0.40 Buy Box: The original accumulation zone remains valid. If the price retraces here, it’s a great area to load up.

Range Accumulation: For those looking to build positions more aggressively, the entire range between $0.40 and $0.55 can be used for accumulation. This approach allows for flexibility while keeping risk in check.

Breakout strategy:

Watch for a breakout above $0.55. If confirmed with strong price action, look for a retest of $0.55 as support before targeting higher levels. This is the kind of move that signals a shift into the next phase of bullish momentum.

Key levels:

  • $0.40: Remains the baseline support and accumulation zone.
  • $0.55: Key resistance level. A breakout here confirms a bullish continuation.
  • Above $0.55: Watch for price discovery and follow the momentum for further upside potential.

Cryptonary’s take

We’ve nailed the Parcl setup, and the levels have played out exactly as expected. The bounce from $0.40 was textbook, and now we’re seeing the next phase of price action develop. The stalling at $0.55 is healthy, as it reinforces the level’s importance and sets us up for a more explosive move when it breaks.

If you’re looking to accumulate more Parcl, the range between $0.40 and $0.55 is where the focus should be. Either a retest of $0.40 or a breakout and retest of $0.55 will provide clean opportunities to position for the next leg up. Stay sharp, stick to the levels, and let the market come to you. Parcl’s structure is lining up for more upside potential, and we’re ready to capitalize on it.


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