Binance Coin (BNB) is consolidating between resistance and support, with no clear indication about the future trend direction.
Since reaching its all-time high (ATH) price of $691.80 on May 10 last year, BNB has continued its declining pattern. After a sharp drop, the price bounced back but made a lower high (red icon) on 7 November.
Since then it has been falling more slowly.
Bullishly reaching 2022, BNB hit a low of $323.50 on 24 February. The low acted to validate a longer term ascending support line that has been in place since February 2021. Every time BNB has bounced off it, it has created a very long bottom wick.
The line is currently at $350. Measured by its ATH, BNB has lost 39.50 percent so far.
Cryptocurrency traders and investors @PostyXBT tweeted a chart of BNB, which shows that the price is bouncing off a long-term ascending support line, which coincides with the one mentioned above.
current consolidation
The daily chart shows that BNB has been declining below a descending resistance line since November 7. So far, it has been rejected by the line five times, most recently on April 5.
Technical indicators provide mixed readings.
Both the MACD and the RSI (Green Line) were preceded by a bullish divergence. However, while the trendline in MACD is still intact, the RSI has already broken below it.
The RSI is currently at 50 while the MACD is near 0. Both of these are considered to be signs of a neutral trend.
Therefore, technical indicators on the daily time frame are providing mixed readings.
The nearest support area is at $360, while the nearest resistance area is at $455.
However, the six-hour time frame is more bearish, as it shows that BNB has broken above an ascending support line and later validated it as resistance.
While BNB bounced off the 0.5 Fibonacci retracement support level, it failed to reclaim the previous ascending support line. If it fails to do so, there could be a further decline towards $376.
bnb/btc
The BNB/BTC chart is more decisively bearish. This indicates that the price has formed a double top in the period between May-December 2021. The double top is considered a bearish pattern, which means that it leads to a downside most of the time.
Furthermore, the pattern has been aligned with bearish divergence in both the RSI and MACD (Green Line).
If the downside movement continues, the nearest support area will lie at 0.0074.
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