After increasing by more than 25% from the monthly low, Binance Coin faced rejection and remained indecisive for the past week. It may repeat a recent bearish pattern if the price continues to turn weak daily.
Last week, BNB bounced sharply off a key price level after witnessing a crash. It later faced rejection and halted buying at $530. The trading volatility dropped and the price remained calm under this price level.
Today, the market turned weak and the price fell to a daily low of $515. A further drop from that low could activate a fresh dip. However, taking a look at the market structure, the crypto landscape might change soon following a lower low and lower high pattern all the way from $725.
If this bearish pattern repeats, the potential target level to watch for such a drop is $340 – last December’s high. A stronghold above the key $400 level that rejected bearish actions last week could trigger a fresh buy.
But from the look of things, the bulls might find it difficult to defend this key level due to a heavy supply. In case of a further price push, BNB must climb back above the previous monthly high before considering a possible bullish move.
As it stands, the bearish trajectory is still much active from a short-term perspective. Another sell-off is lurking around the corner following a 2% daily loss.
BNB Key Level To Watch
Source: Tradingview
The $496 level is close support to watch for a drop, followed by the $454.7 level – July’s low. Right below this level lies $427.3 and $400.
If BNB manages to push at the $553 level, there’s a minor resistance at $575, followed by the major $605.6 resistance. The next one to keep in mind is $634.
Key Resistance Levels: $553, $605.6, $634
Key Support Levels: $496, $454.7, $427.3
- Spot Price: $515.4
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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