Bancor (BNT) price predicted to fall towards new lows

The price of Bancor (BNT) fell to a new annual low on 13 October and the ensuing bounce failed to initiate a reversal.

BNT has been falling since reaching an all-time high of $9.36 in March 2022. The downside price movement was initially inside a descending parallel channel.

In early June, the price broke out of the parallel channel. Later it accelerated its rate of decline. It eventually reached a low of $0.39.

Later BNT price bounced, the upward momentum was weak. It also failed to reach the support line of the channel (red sign), creating long upper wicks instead.

While the weekly RSI is creating a bullish divergence, it is yet to be confirmed, as BNT price is yet to initiate any kind of upward movement.

If the decline continues, the nearest support areas will be $0.34 and $0.20.

Bancor failed to sustain price bounce

From a technical analysis perspective on the daily time frame, it is showing that BNT price is declining below the descending resistance line since Aug. So far, the line has been validated five times (red mark).

A key development in the price action was a break below the $0.44 area, which previously acted as support from June to August. Now this zone coincides with the descending resistance line, extending its validity.

Another interesting development is the bullish divergence in the RSI (Green Line). While it has been rising since June, it seems that the trend line has now been broken.

So, the most likely scenario would be a continuation of the downward movement.

If by any chance there is a BNT price breakout, the nearest resistance area will be $0.54. This is the 0.5 Fibonacci Retracement resistance level and a horizontal resistance area.

new annual lows expected

To conclude, the most likely scenario for BNT price is a downside move towards $0.34.

Alternatively, a breakout from the descending resistance line and a retest of the $0.44 area would invalidate this bearish price prediction.

Instead, it would indicate that the banker price could reach higher levels near $0.54. However, this still won’t accelerate the longer term trend, and another eventual downtrend will likely still happen.

For the latest BeInCrypto Bitcoin (BTC) and crypto market analysis, click here

Disclaimer: BeInCrypto strives to provide accurate and up-to-date information, but will not be responsible for any missing facts or incorrect information. You comply and understand that you should use this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do the research and make your own financial decisions.


All information contained on our website is published in good faith and for general information purposes only. Any action taken by readers on information found on our website is strictly at their own risk.

Source link

Leave a Comment