Binance Coin Price Prediction: Here’s Why BNB May Drop Another 20%

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Binance coin price prediction: Amid the recent downfall in the crypto market, the BNB price lost a crucial multi-month support of $257-$252. This breakdown releases the coin price from its prior sideways trend and encourages the resumption of the prior downfall. Thus, how far a potential decline may lead the BNB prices.

Key points

  • A bearish engulfing candle at $252 resistance suggests the high possibility for a downtrend continuation.
  • The downsloping EMAs(20, 50, 100, and 200) may offers dynamic resistance to any potential bullish recovery
  • The intraday trading volume in the BNB price is $793.8 Million, indicating a 13% gain.

Source- Tradingview

Chaos in the crypto market continues due to opaque information on Binance’s finances. The so-called largest crypto exchange is currently under investigation by the U.S. Justice Department on suspicion of money laundering and violating sanctions. 

As the crypto market has recently been through similar mayhem with the FTX crypto exchange crash, the market participant is on high alert with the ongoing trail on Binance. Moreover, fear among traders has already begun to emerge in the crypto market, particularly for Binance coin(BNB). As a result, the BNB price witnessed aggressive outflow during mid-December, which tumbled its value by 16% within a fortnight.

Amid this downfall, the sellers have recently breached multi-month support of $257-$252. Moreover, with the ongoing uncertainty in the crypto market, the BNB price managed to retest the $252 mark as potential resistance. 

On December 19th, a bearish engulfing candle at the retest phase indicates the sellers are defending the newly flipped resistance. A post-retest fall may tumble the prices 23% down to $190 support. 

However, the in-between level of $215 remains a strong support that could assist buyers in regaining trend control.

On a contrary note, if the retest phase or consolidation just below $252 prolong for a few more trading sessions, the Binance coin price could jump above the mentioned level and undermine the bearish thesis.

Technical indicator

RSI: this indicator has reverted from the oversold region, indicating that excessive selling in the market has been stabilized. Moreover, the RSI slope still wavering in the deeper level of indicators’ nearish territory indicates the market sentiment favors more downfall.

EMAs: the increasing gap between EMAs(20, 50, 100, and 200) reflects the established downtrend, and selling activity remains high.

  • Resistance Levels: $257 and $300
  • Support Levels: $215 and $190

The post Binance Coin Price Prediction: Here’s Why BNB May Drop Another 20% appeared first on CoinGape.

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#Bitcoin #Crypto #Cryptocurrency

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