Binance Coin continues to correct lower for three weeks. It saw a substantial loss this week following a rejection in the past month. It is still looking for firm support to foot another bullish.
After marking a multi-high at $346 in mid-March, BNB saw a sudden rejection and started to lose momentum. Up till now, the cryptocurrency is yet to find a solid level for a rebound.
Meanwhile, the price flash crashed to a weekly low of $300 on Monday and quickly recovered above the $310 level – which has remained a benchmark for the sellers ever since.
Lower lows and lower highs formation on the 4-hour chart indicates that the price is still in a correction phase. We can see that the price respects the descending trend line, which has acted as resistance for the past three weeks.
An attempt to flip this trend line failed in the mid-week with a slight fakeout. The sellers tried to get back in action, but there was not much volume to initiate another drop. However, trading activity looks boring.
If BNB finds a clear break above the crucial resistance line, it could regain momentum and rally toward the previous month’s high. However, it may retest the trend line as support before taking off.
A continuous drop in price will position the market in a more bearish condition. While the asset remains bearish, it has posted over 70% gains in the last six months.
BNB Key Level To Watch
As BNB is yet to show signs of recovery, the potential support level to keep in mind is the weekly low. The lower support to watch is $283 and $270 in case of a breakdown.
If the price manages to recover from the current price level, the immediate level to consider as resistance is $318.4, above the resistance line. The following resistance levels to watch are $327.8 and $337.5.
Key Resistance Levels: $318.4, $327.8, $337.5
Key Support Levels: $300, $283, $270
- Spot Price: $310
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: niphonsubsri/123RF // Image Effects by Colorcinch