The probabilities favor sellers, but the ground would be clear for USD 260 if the price of BNB lost support at USD 343. As long as the value does not lose that level, the strong upward trend of Binance Coin will remain intact.
Cryptocurrency investors seem to have taken advantage of the drop in prices on the market. That prevented various cryptocurrencies like Binance Coin from losing significant support levels.
The value of BTC has recovered to almost USD 40,000, leading most of the crypto market to be in the green. Although the behavior seems to indicate that the worst is over, there is no evident bullish confirmation at a technical level.
There is still fear due to the current tension in Europe, but the possibility of dialogue has somewhat calmed the situation.
The possible postponements of interest rate hikes and continuing quantitative easing will also continue to favor risk assets.
Since Binance Coin is moving alongside the entire crypto market, it is always worth looking at the bigger picture.
BNB is trading at around USD 371 and has accumulated a gain of 1.7% in the last 24 hours. Its trading volume is above USD 994.84 million, and its market capitalization is about 62.68 billion. It occupies 4th place in the cryptocurrency ranking, according to CoinGecko.
The following analysis provides details about the current situation of the price of that crypto asset.
Weekly Technical Analysis of the Price of Binance Coin
The weekly BNB/USDT chart shows that the price has support at USD 343, from which it is making a relief rally.
There is a growing possibility of gains to spread further, but the price must first breakthrough resistance at USD 420 for the bulls to claim victory.
Currently, the probabilities are still slightly leaning towards the side of sellers. If the price of BNB lost support at USD 343, the ground would be clear for USD 260.
Monthly Analysis of the Price of BNB
The monthly scenario for Binance Coin is quite encouraging. That situation will continue unless the price breaks through the large support zone around USD 265.
The double top forming at USD 638 causes some fear among the bulls, as it seems to favor those thinking that the correction could go deeper.
Anyway, as long as the value does not lose the above support level, the strong upward trend of Binance Coin will remain intact. There could also be pressure on the price to reach new all-time highs in the coming months.
There will quite likely be more losses for BNB in the short term. A new test of the support zone around USD 265 on the table will allow for a more transparent reading of what could happen next.
The price of Bitcoin influences the rest of the cryptocurrency market, and Binance Coin is not an exception. Many factors like the tense situation in Europe contribute to the drop in the price of crypto assets. However, the bulls might resume control over the market in the coming months if the trend continues.
By Alexander Salazar
