Will BNB drop more? Patterns, Supports, and Sentiments Under Scrutiny

Table of Contents

BNB slipping below significant level of $220
BNB broke bear flag and price start dipping
Manipulation in the price of BNB by CZ

Binance coin (BNB) is the exchange token of one of the most widely used exchanges. BNB has market cap of around $33 Billion, and is the 4th largest cryptocurrency by market cap. BNB is currently trading at $214.24 with circulation supply of 153,851,377 BNB.

BNB Weekly Review:

During the past week, BNB exhibited trading patterns across different timeframes, revealing significant price movements and resistance points. In the weekly timeframe, BNB displayed a symmetric triangle pattern, with a robust upper resistance line and a strong lower support line. However, a pivotal shift occurred in the first week of June 2023 when BNB encountered a breach beneath the support line due to Security and Exchange Commission allegations against Binance. Following this breach, BTC attempted to retest the former support line, which had now become a resistance, yet it struggled to surmount this obstacle, consequently initiating a decline. Currently, the Relative Strength Index (RSI) for the weekly interval rests at 33, signifying a lack of oversold conditions. Meanwhile, the Moving average convergence/divergence (MACD) indicator resides within negative territory. A bearish crossover for BNB took place in the third week of May 2023. Notably, BNB’s weekly support range lies approximately between $180 and $185.

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Daily Movement Analysis:

Transitioning to the daily timeframe, BNB’s trading activity unfolded within a horizontal range bounded by $250 as a formidable resistance and $220 as a robust support. The $220 level demonstrated its strength by prompting upward price movements on two separate occasions, while the $250 level exerted its influence by inducing downward fluctuations in BNB’s value on five distinct occasions. This emphasizes the psychological significance of the $250 mark as a pivotal resistance threshold for BNB. Unfortunately, BNB experienced a breach beneath its $220 support during the previous week’s market decline, setting the stage for further downward movement. Notably, BNB’s subsequent support levels are identified at $200-$205 and $180-$185. Deeper into this spectrum, the following support tier rests within the range of $140-$150. Therefore, the preservation of the $200 level is of paramount importance for BNB, with the $180 level assuming even greater significance.

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Bearish Patterns and Potential Scenarios:

On the daily chart, BNB also reveals a bearish pattern in progress. The recent week witnessed a breakdown of the bear flag pattern, which has led to the anticipated downward movement. The bear flag’s projected target aligns with the $150 support level, following the intervening levels of $200 and $180. To sustain a bullish market outlook, it is imperative for BNB to maintain positions above these two intermediary support thresholds. Failure to do so might trigger substantial selling pressure, potentially causing a pronounced decline.

Market Sentiments and Influential Factors:

The prevailing market sentiment regarding BNB is not currently favorable, as various factors contribute to a cautious stance. Notably, the broader cryptocurrency market endured strain due to a substantial market decline and a cumulative liquidation exceeding $1 billion within a single week. Furthermore, a projection indicates that BTC might undergo a decline to the $25000-$25200 range at least once. BNB’s fate is closely intertwined with BTC’s performance – if BTC effectively maintains its $25000 support, BNB could similarly retain its $180 support level. Conversely, failure on BTC’s part to hold the $25000 support may lead to a decline to the $22000 range, potentially pulling BNB down to the support band of $140-$150. Another important factor is the selling of Bitcoins by Changpeng Zhao (CZ) to maintain the price of BNB. Chain analysis showed that CZ was selling Bitcoins to buy BNB coins. By that way he can retain the important support of BNB. That is the reason every coin dipped by more than 15% in a single day but BNB just dropped 6% on crash day.

You can access our article on sentimental analysis by clicking here.

Conclusion:

BNB’s recent trading patterns and critical support levels underscore the importance of strategic decision-making and vigilance in the face of potential market shifts. Various factors, including BTC’s performance and prevailing market sentiments, are expected to exert considerable influence on BNB’s trajectory in the coming period. Buying pressure created by Changpeng Zhao might push BNB price above the support region and take BNB to safe zone.