BNB looks bearish from the daily outlook, but trading has remained in a range since it found support in August. It recently initiated a drop near this support. A big sell-off should be expected if a crackdown occurs.
Binance Coin had suffered a massive loss over the past couple of months. On August 22, the price dipped to a 13-month low of $204, took a break from the dip and subjected the price actions to a sideways movement.
A week’s recovery from that low brought a retest at that month’s breakdown support level of $234.8. It marked a resistance there and later closed August’s price at $213. The price later ranged throughout September after failing to increase above $222.
Looking at the current market structure, BNB has been in the fall since the start of the month with a 7% loss in the past week. Now that the price is trading conveniently well above a multi-month low, a crack below it could crash the price by 20% before it finds support.
The volume indicator is still in a downward range on the daily chart, suggesting more selling could be underway as money flows out of the market by the day.
Having lost more than 30% of its price since the start of the year, the asset could remain weak until it finds a bottom to reverse the trend.
BNB Key Level To Watch
While the price is on the verge of breaking down, the nearest support to watch is $204, followed by the $200 mark, which is likely to reject sharply on the lower time frame before slipping further to $195 and $183.7.
BNB’s resistance levels are currently held at $213.8 and $221.6. If BNB increases and reclaims these mentioned levels, the next resistance for a test is $234 and $248. But currently, the bears are gaining control.
Key Resistance Levels: $213.8, $221.6, $234.8
Key Support Levels: $200, $195, $183.7
- Spot Price: $206
- Trend: Neutral-Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.