Key Takeaways:
- BNB price struggled above $255 and trimmed all gains.
- It broke a major bullish trend line with support at $244 on the daily chart.
- The price is signaling a bearish breakdown with chances of a sharp decline.
New Delhi(Coinchapter.com): BNB peaked near $275 after Binance’s settlement and CZ’s stepping down. It trimmed most gains and is now at risk of more downsides toward $200.
BNB Price Takes Hit
Earlier this month, BNB saw a steady increase above the key $220 resistance zone, like Bitcoin and Ethereum. The bulls were able to push the price above the $245 and $250 resistance levels. It even spiked above $270 before the bears appeared.
A high was formed near $274 and the price started a fresh decline after Binance’s settlement and CZ stepping down as the CEO. There was a sharp decline below the $255 and $250 level. The price broke the 61.8% Fib retracement level of the upward move from the $203.1 swing low to the $274.2 high.
The price broke a major bullish trend line with support at $244 on the daily chart. More importantly, the bears were able to push the price below the $232 pivot level and the 50-day simple moving average (blue).
BNB is now consolidating below the 50-day simple moving average (blue). There is also a short-term contracting triangle forming with support at $225 on the same chart.
A downside break below the triangle support might call for a test of the main support at $220. It is close to the 76.4% Fib retracement level of the upward move from the $203.1 swing low to the $274.2 high. A daily close below the $220 support could increase selling pressure.
In the stated scenario, BNB price might collapse and revisit the $200-$202 support region (a multi-touch zone). The $200 handle holds a lot of importance. If the bulls fail to protect $200, the bears could even aim for a massive 30%-40% drop in the coming weeks.
Another Recovery Wave?
Conversely, the bulls might protect $220 and attempt a fresh increase. On the upside, the price is facing resistance near the $230 zone and the 50-day simple moving average (blue).
The next major resistance could be near the $238 level. A clear move above the $238 resistance might start another decent increase. In the stated case, the price might test $258. Any more gains might send the price toward the $274 resistance level.
Overall, BNB price is signaling a strong bearish bias below $230 and $238. If it fails to stay above $220, there could be a massive drop. Conversely, the price might start a recovery wave toward the $238 resistance or even $258.
