Key Takeaways:
- BNB price struggled to clear the $250 resistance and trimmed gains.
- Two key bearish trend lines are in place with resistance $238 and $260 on the daily chart.
- A close below the $200 support could spark a sharp decline.
BNB is showing bearish signs below $250. There could be a major drop if the bulls fail to push the price above the $260 level.
BNB Price Faces Uphill Task
This past month, BNB faced a strong rejection near the $335 level against the US Dollar. There was a steady decline below the $280 and $250 support levels.
It even settled well below the $250 level and the 50-day simple moving average (blue). The decline gained pace below the $200 level and the price tested a major support at $185. Recently, there was an upside correction above the $205 and $215 levels.
BNB’s daily price chart | Source: BNBUSD on TradingView.com
The price climbed above the 23.6% Fib retracement level of the main decline from the $337 high to $183 low. However, the bulls failed to clear the $248 and $250 resistance levels. They made two attempts to clear the $248 resistance zone but struggled to push the price into a positive zone.
There are also two key bearish trend lines in place with resistance $238 and $260 on the daily chart. The 50% Fib retracement level of the main decline from the $337 high to $183 low is also near the $260 zone and the 50-day simple moving average (blue).
To start a decent increase, BNB price must clear the $250 and $260 resistance levels. In the stated case, the price could rise towards the $300 pivot level.
Conversely, the price might fail to rise and start another drop below the $220 support zone. The next major support is near $200, below which the price may perhaps dive towards $182. In the stated case, the price may perhaps decline towards the $150 support.
Overall, the current structure is clearly bearish and BNB price is now approaching a crucial breakdown support at $200. If there is a clear move and close below $200, the price could decline heavily. Conversely, the bulls may perhaps attempt an upside break above the $250 and $260 resistance levels. In the stated case, the price could rally towards the $300 level in the coming days.
