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Binance Coin (BNB) Price Forming a Bearish Pennant, Is Further Downside Ahead?

Binance Coin (BNB) Price Forming a Bearish Pennant, Is Further Downside Ahead?

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Rated:101

Binance Coin (BNB) has been reviving fairly well ever since its low of $227 was set on June 22nd. Price revived nearly 140% in a little under 2 months as the overall market has attempted to regain levels traded at April/May of this year. The BINANCE platform has been stepping up its regulation side over the last few months but still manages to account for nearly 50% of all volume traded across the crypto market.

BNB price plays in an important role within the Binance ecosystem & will continue to do so as long as Binance Is alive.

After such a strong run up in August, BNB price has began falling since the start of September. Prices are down nearly -20% from the monthly high of $520. Once BNB gave up its support level of $487 a couple days back, price quickly fell nearly $100 in just a few hours. Since the drop, BNB has been holding above its major support zone of $381-$393 very well.

Over the past few days price has began forming a bearish pennant (shown in light blue). If bears pull price below the bottom trend, BNB price will be in for a fall back to $393 at minimum.

BNB Coin Price Analysis: BNB/USDT 4 Hour Chart

Since the drop has occurred, the 25 MA has acted as resistance (shown in orange). At the time of writing, price is currently playing with this MA as it attempts to gain the strength to break over it. If bulls manage to pull off a break to the upside of this MA, price will then have to battle out the top trend of the pennant along with a major resistance of $420. In the case that bulls break through all these marks, expect a push to $436 at minimum.

While looking at the Stochastic RSI, we can see indecision is currently taking place as the strength is attempting to break back above the 50 value. If strength continues above the 50 value & heads towards the overbought region, expect BNB price to break to the upside of its pennant.
While looking at the MACD, we can see how the MA’s just had one of the largest resets in months. As long as the MAs continue towards the 0 value, expect BNB price to break past $420.

BNB Intraday Analysis

Spot rate: $411
Trend: Bearish
Volatility: Medium
Support: $408
Resistance: $420

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

Domenic

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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