Binance Coin at Risk: Will BNB Be Able to Hold on to 900-Day Support
Date: 2023-07-27 Author: Karina Ziganova Categories: BLOCKCHAIN
Binance Coin is trading inside a long-term support area that has been around for 875 days. This structure plays an important role in maintaining a bullish trend
In addition, BNB is within a short-term corrective pattern, which further increases the chances of a potential breakout.
BNB is trading at the lower end of the range
Since May 2022, BNB has been trading in the range of $225-350 and has repeatedly touched both of its borders during this time. In April 2023, the price of the asset briefly went beyond its limits, which led to a decrease to the minimum of the range in June. After that, BNB bounced back a bit, but still hasn't started any significant upward movement.
Since the support area has been around for 875 days, a break below it could trigger a sharp drop.
The weekly Relative Strength Index (RSI), which is at around 35, confirms the possibility of further decline.
Binance Coin Price Prediction: Exiting the Pattern Will End in a Fall
Technical analysis of the daily timeframe gives a bearish forecast. The main reason for this is the price action of Binance Coin, but the RSI also supports the possibility of a fall.
Since hitting a local low on June 10, BNB has been trading inside an ascending parallel channel. This pattern is considered bearish, which means that it most often leads to breakouts. The fact that price is trading at the bottom of the channel further confirms this possibility.
In addition, the daily RSI has bounced off the ascending support line and is below the 50 level.
Thus, the most likely scenario seems to be a breakdown of the current model. If this happens, the price of BNB will drop to the $220 level.
However, it is worth noting that this will not lead to a breakdown of the long-term area of $225, as it will require a weekly close well below it to confirm it.
However, if the price of Binance Coin bounces off the channel's support line and moves above the midline, it could rise to the next resistance at $270.
