BNB price drops to critical 930-day support
Date: 2023-09-14 Author: Karina Ziganova Categories: BLOCKCHAIN
Binance's native token BNB is going through hard times. In April 2023, the asset price failed to break above the horizontal resistance area at $350 and has been falling since then.
Although the weekly timeframe reading is decidedly bearish, a bullish pattern on the daily chart could catalyze a significant upward move.
BNB falls to the bottom of the range
Technical analysis of the weekly timeframe shows that BNB is trading inside a horizontal area that has existed for 930 days. In August, the price went beyond its limits, but was unable to maintain growth and returned to the range again.
In November 2022 and May 2023, the asset made lower highs (marked with red icons on the chart). This became a catalyst for a decline to the lower limit.
The weekly relative strength index (RSI) is giving bearish signals. The indicator is below 50 and continues to fall without even trying to form a bullish divergence that could initiate a trend reversal.
A “double bottom” pattern has formed on the daily timeframe
Technical analysis of the daily timeframe, meanwhile, gives a more positive outlook. The main reason for this is the formation of a double bottom, which is considered a bullish pattern.
A double bottom is also combined with a bullish divergence on the RSI, the occurrence of which often leads to an upward move. This increases the likelihood that BNB will reverse and reach the $255 resistance area again.
However, a close below the $210 horizontal area will invalidate the double bottom pattern. In this case, the asset will face a further fall towards $170.
