Binance being at the heart of the controversies linked to the attacks of the American regulator, the price of the Binance coin (BNB) has literally paid the price.
The current technical analysis was carried out in collaboration with Elie BR, passionate investor and trader in the cryptocurrency market. Today trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find lives, educational content and mutual aid around the financial markets in a professional and warm atmosphere.
End of BNB consolidation?
After the SEC charge against Binance, the price of BNB has fallen more than 20% leaving behind the $350. This decline was able to fade by rebounding for the third time on $220.
We can see in weekly time frame that the price of the cryptocurrency has formed a range between these last levels slightly above the 78.6% retracement since its meteoric rise in 2021. It is interesting to see that the price of BNB forms a semblance of “double top” visible in weekly time period.
The BNB Long/Short ratio Chart presented by Coinglass has been showing us for several days a selling pressure that should not be overlooked.
Moving Averages
The price of Binance Coin is below the 50 and 200 moving averages that cross globally on the downside. This is not intended to be reassuring on the bull side. Besides that, the fact that the daily moving averages are rather flat, can tell us that Binance coin price is in a consolidation phase.
The RSi (Relative Strength Index)
The RSI is a financial indicator that assesses the strength and weakness of an asset by analyzing its price changes over a given period. It uses a scale of 0 to 100 to identify overbought and oversold levels.
If we pay attention to this indicator in daily time period, we can deduce that BNB was recently oversold, being below the 30 threshold. If we observe it in 4 hours we can see a nice bullish divergencesuggesting a potential upward trend reversal.
Binance Coin Price Assumptions
- Before seeking too high objectives, it will be necessary to consider initially a return to the top of the range for the price of BNB, i.e. around $340. Before that, the cryptocurrency will have to exceed the level of $265, line of blow of a double top visible in daily, which could be defended in view of the VRVP. Finally, it will then be necessary for the price of the BNB to exceed the psychological threshold of $300.
- For a more pessimistic scenario, it will be necessary to frankly break the zone of $220 to have a truly bearish horizon. These potential targets could first be the psychological threshold of $200 and then $183.4, the last low since the ATH of BNB.
- The last scenario would be more platonic with a broad consolidation at the bottom of the range.
Conclusion
BNB is facing many negative factors that are causing some selling pressure on its price. The latter is getting dangerously close to its lowest since its ATH. We must hope for a renewed confidence and a real return of the bulls, to cause the cryptocurrency to regain color. It will be important to carefully observe the reaction of the price on the different identifiable levels to confirm or not the different hypotheses stated. Beware of potentialfake out” And “market squeeze” on each of the situations. In addition, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies can change more or less quickly, depending on other more fundamental factors.
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