BNB coin, reached $275 after Binance’s deal and CZ’s resignation. However, it pared most of its gains and is now at a risk of further declines towards $200.
BNB Price Takes a Hit
Earlier this month, BNB Bitcoin And like Ethereum, it saw a steady increase above the key $220 resistance zone. The bulls managed to push the price above the $245 and $250 resistance levels. It even climbed above $270 before the bears emerged.
After Binance’s deal and CZ’s resignation as CEO, a high was formed around $274 and the price started a new decline. There was a sharp decline below the $255 and $250 levels. The price broke the 61.8% Fib retracement level of the upward move from the $203.1 high to $274.2 low.
The price broke a major bullish trend line with support at $244 on the daily chart. More importantly, the bears managed to push the price below the $232 pivot level and the 50-day simple moving average (blue).
altcoin It is currently consolidating below the 50-day simple moving average (blue). There is also a short-term contracting triangle forming with support at $225 on the same chart.
Koinfinans.com As we reported, a downside break below the Triangle support could require a test of the major support at $220. This is close to the 76.4% Fib retracement level of the upward move from the $203.1 low to $274.2 high. A daily close below the $220 support could increase the selling pressure.
In the mentioned scenario, BNB price could decline and revisit the $200-220 support zone (multi-touch zone). The $200 handle is of great importance. If the bulls fail to defend $200, the bears could even target a major decline of 30%-40% in the coming weeks.
Another Wave of Recovery?
Conversely, the bulls might protect $220 and attempt a fresh increase. On the upside, the price is facing resistance near the $230 zone and the 50-day simple moving average (blue).
The next major resistance might be near the $238 level. A clear move above the $238 resistance could start another modest increase. In the mentioned case, the price could test $258. More gains could send the price towards the $274 resistance level.
Overall, BNB price is signaling a strong bearish trend below $230 and $238. If it fails to stay above $220, there could be a major decline. Conversely, the price could start a recovery wave towards the $238 resistance or even $258.