Why Binance Coin (BNB) Short-Term Price Is No Reason to Cheer



Binance Coin (BNB) price is trading within a short term bullish pattern. While this makes a breakout seem likely, the longer-term trend indicates that another decline will eventually follow.

BNB is the native token of cryptocurrency exchange Binance, led by changpeng zhao, BNB has declined since hitting an all-time high of $691.80 in May 2021. A decline in June 2022 resulted in a low of $183.40.

The price of BNB has been on the rise ever since. On November 8, it appeared to have broken out of the long-term $345 horizontal resistance area. However, it failed to sustain its upward momentum and closed below the zone.

Additionally, the weekly RSI has declined below 50.

If the decline continues, the nearest support is located at $225.

Will the BNB price rally last?

Technical analysis on the daily time frame suggests that BNB price has fallen Since reaching a high of $398.30 on 8 Nov. The decline was sharp, forming a very long upper wick (red icon), indicating selling pressure.

Binance Coin price is currently trading inside the $265 horizontal support area. This is the 0.618 Fibonacci retracement support level and a horizontal support area.

While the area started to bounce (green icon), the rise has already been retraced. Furthermore, the daily RSI is below 50, a bearish signal.

If there is a breakdown, the next nearest support is at $240. However, due to the reading from the weekly time frame, BNB price could decline further towards $225.

Relief rally before breakdown?

The movement following the bounce of November 9 looks like a three-wave structure. After the bounce, the highest price was reached at $313. Later, BNB price fell inside a descending wedge, a bullish pattern. The decrease also looks like a three-wave structure.

As a result, it is likely to lead to breakouts. If one occurs, the main target for the future price is at $316, giving both upside movements a 1:1 ratio (white). BNB price has been relatively neutral over the past 24 hours, potentially consolidating for an upcoming breakout.

However, due to bearish readings from the weekly time frame, the downside is likely to continue afterwards.

For the latest Bitcoin (BTC) analysis from BeInCrypto, click here.

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