Technical Analysis Binance Coin BNB at the Center of Controversy

Technical Analysis: Binance Coin (BNB) at the Center of Controversy – Cointribune

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With Binance at the center of controversy surrounding the attacks by the American regulator, the price of Binance coin (BNB) has literally paid the price.

BNB/USD price chart in Weekly

The current technical analysis was done in collaboration with Elie BR, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Trading, a community of thousands of proprietary traders that has been active since 2017. Here you will find life, educational content and mutual help related to the financial markets in a professional and warm atmosphere.

End of BNB Consolidation?

Following the SEC indictment against Binance BNB price has fallen more than 20% leave the $350 behind. This decline was tempered as it recovered to $220 for the third time.

We can see on the weekly timeframe that since its meteoric rise in 2021, the cryptocurrency’s price has formed in a range between these recent levels, slightly above the 78.6% retracement. It is interesting to see that the price of BNB sees a sort of “double top” on weekly timeframes.

The BNB long/short ratio chart presented by Coinglass has been showing us selling pressure for several days that should not be overlooked.

BNB Long/Short Ratio Chart CoinglasS

Moving Averages

Binance Coin price is below the 50 and 200 moving averages crossing to the downside globally. This is not meant to calm the bull market. Additionally, the fact that the daily moving averages are rather flat can tell us 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 period of time. It uses a 0 to 100 scale to identify overbought and oversold levels.

Looking at this indicator in the daily period, we can conclude BNB was recently oversold, trading below the 30 line. If we watch it in 4 hours we can see it a nice bullish divergencesuggesting a possible reversal of the uptrend.

BNB/USDT price chart on 4-hour and weekly charts

Binance coin price assumptions

  • Before aiming too high, you have to think about it first a return to the upper price level of BNB i.e. around $340. Before that, the cryptocurrency needs to surpass the $265 level, the limit of an intraday double top that could be defended given the VRVP. Finally, the price of the BNB must then cross the psychological threshold of $300.
  • For a more pessimistic scenario: Frankly speaking, a break of the $220 zone will be necessary to have a real bearish horizon. These potential targets could be the psychological level of $200 first and then $183.4, the last low since BNB’s ATH.
  • The last scenario would be more platonic a broad consolidation at the bottom of the range.

    • BTC/USD price chart in daily units (1D)

    Diploma

    The BNB faces many negative factors that are putting some selling pressure on its price. The latter is dangerously close to its lowest level since its ATH. We must hope for renewed confidence and a real return from the bulls for the cryptocurrency to regain some color. It will be important to carefully observe the reaction of the price at the different discernible levels in order to confirm or not the different hypotheses put forward. Beware of possible “fake-outs” and “market bottlenecks” in every situation. In addition, it should be borne in mind 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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