Binance Coin price could crash 25% if BNB bulls rescue plan fails
- Binance Coin price action over the last three months has led to a rising wedge formation, forecasting a 25% crash.
- If BNB flips the $300 psychological level into a resistance barrier, it will likely kickstart a nosedive.
- On the other hand, if buyers push BNB above $356, it could catalyze a move to $445.
Binance Coin (BNB) price has been on a tight leash for nearly three months. Although the overall trend might look bullish, there is a slowdown in its ascent. BNB looks primed for a breakout that is favoring bears, but confirmation is critical for traders before taking a decision.
Also read: Binance Coin price to tank 10% as Bitcoin withdrawal ban is lifted and then reinstated again
Binance Coin price is at an inflection point
Binance Coin price has been consolidating in a rising wedge pattern since November 2022. This technical formation contains four higher highs and three lower lows formed between November 2022 and May 2023. Connecting these swing points using trend lines reveals a rising wedge setup.
BNB trades at $312 at the time of writing. Although BNB has not produced a decisive breakdown of the rising wedge yet, a daily candlestick close below $300 would likely trigger a steep correction. Adding the distance between the first swing and swing low to this breakout point would reveal the target at $236. This would represent a 25% fall from current price levels.
There is an off chance that Binance Coin price could sweep $300 and trigger a recovery bounce, especially if Bitcoin price makes a comeback. In such a case, BNB could attempt to tackle and overcome the $356 barrier.
BNB/USDT 1-day chart
On the other hand, if Binance Coin price bounces off the $300 psychological level and flips the $356 hurdle into a support level, it will invalidate the bearish thesis. Such a move would attract sidelined buyers and potentially trigger a rally to $445.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
