On June 7, the SEC announced that they are investigating Binance for potentially breaking security laws. The price of Binance Coin (BNB) has decreased slightly as a result.
BNB has been falling since reaching an all-time high price of $691 on May 10, 2021. The price created a slightly lower high in Nov. 2021 and has been decreasing at a more accelerated rate since.
In May 2022, the price broke down from an ascending support line that had previously been in place since early 2021. The breakdown from such a long-term structure is considered a significantly bearish development. The downward movement led to a low of $218.8. The ensuing bounce created a long lower wick and served to validate the $225 area as support.
Besides this level, there are no other visible horizontal support areas until close to $100.
The weekly RSI is below 50, in what is considered a sign of a bearish trend.
Cryptocurrency trader @Call_Me_Cypher tweeted a chart of BNB, stating that the price could fall down close to $200. This aligns with the support area outlined in the image above.
Weak BNB bounce
The daily chart shows that the May 12 bounce was preceded by a bullish divergence in the RSI (green line). However, the trendline of the divergence is no longer intact. This is a sign that lower prices could follow. Also, the RSI has been rejected by the 50 line and is decreasing.
The closest support area is at $265. This is the 0.618 Fib retracement support level, and the final support prior to the wick lows of May 12.
The two-hour chart shows that BNB could be trading inside a descending parallel channel, though the support line of the structure is not yet validated sufficient times.
The support line falls at $265, coinciding with the previously outlined Fib support area.
So, due to the confluence of these levels, the $265 area seems to be a likely level for a bounce.
However, the longer-term trend still remains bearish due to the readings from the weekly and daily time frames.
For Be[in]Crypto’s latest bitcoin (BTC) analysis, click here
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Be the first to comment