The price will not confirm a new bullish formation above USD 330 unless it breaks through the neckline at USD 420. The bullish force will continue to dominate unless the value of BNB loses the support around USD 250.
It seems that the price of Binance Coin (BNB) will continue to drop further as greed begins to fade in the crypto market. The following analysis shows how dangerous that fall could be for investors in the cryptocurrency.
BNB is trading at around USD 382.42 and has accumulated a 2.3% gain over the last week. Its daily trading volume is above USD 1.17 billion, and its market capitalization is about USD 64.29 billion, according to CoinGecko.
The price is losing the attempt to resume the bullish trend starting earlier in the week, as the bears have almost wiped out recent gains.
The daily BNB/USDT chart indicates that the price crossed the moving averages EMA of 8 and SMA of 18 to the downside again. For that reason, there will not quite likely be a new considerable rally in the short term.
There could be further pressure from the bearish direction of the last few months in the near term. However, the space for investors to sell their holdings is shorter.
The Price of BNB Is Heading towards Support around USD 330
The recent drop in prices in the crypto market indicates that there could be further selling.
The weekly BNB price chart shows a technical scenario indicating a possible search for immediate support at USD 330
There is a new bullish double top formation above that support level. However, the price will not confirm that trend unless it breaks through the neckline at USD 420.
A retest of the immediate support would not be a good sign, and the price could break through it in this opportunity. If that happened, the ground would be clear for USD 260.
There Is Little Space for Sellers
Although the price of Binance Coin will quite likely be in trouble for a while longer, the long-term trend remains bullish. For that reason, it would not be a surprise to see the bulls taking control over the market soon.
The price crosses the 8-month EMA and the 18-month SMA to the upside, and they serve as dynamic supports following the above trend.
Many cryptocurrencies are currently testing those strong trends, and the reluctance of sellers predicts that the bullish cycle is likely to resume.
There is a well-defined double top formation on the BNB monthly chart, which could be heralding the start of a considerable correction. However, the dominant force will remain bullish if the price does not lose the large support zone around USD 250.
Bitcoin always affects the rest of the cryptocurrency market, and altcoins like Binance Coin are not an exception. Besides, the conflict between Russia and Ukraine has also contributed to the drop in its price. However, the bulls might resume control over the market if the price of BNB does not lose its current support zone.
By Alexander Salazar
