Binance Coin price could retrace to this level if bearish cues continue to prevail

Binance Coin price has not behaved very differently from the rest of the crypto market, declining by 3% in the span of 24 hours. The exchange coin is reacting to the broader market cues following Binance’s move to liquidate its FTT holdings, triggering a market-wide collapse in the cryptoverse, starting with FTT.

Binance Coin price fails another breach

Binance Coin price performed exceptionally throughout the second half of October, rising from lows of $269 to $354 on November 4. Since then, however, the exchange token has been registering red candles. At one point during the intra-day trading hours, BNB almost noted a 7.07% drawdown before recovering to register a decline of 2.53%.

Right before the start of the red candles, Binance Coin price could be seen testing the upper limit of the resistance block ranging from $335 to $357. While the wicks managed to breach it, the candles could not close above it. The downtrend began 24 hours after the failed breach.

The Parabolic Stop And Reverse system (SAR) indicator shows the likelihood of further weakness. Parabolic SAR is used to indicate the expected direction of an asset’s price. It appears as a series of blue dots above and below the price, when below, it is indicative of an uptrend bias; when above of a downtrend bias.

The fact that it is appearing above Binance Coin’s candlesticks indicates the altcoin could drop further. If correct, Binance Coin price could be looking at a fall to retest the 50% Fibonacci line at $316, of the Fib retracement of the $450 to $182 decline. 

BNBUSD 1-day chart

The $316 level could therefore be BNB’s next support line from where it could bounce. But if the bearishness intensifies, BNB could decline to $299, which stands as the asset’s critical support.

However, if the winds change and the ongoing FTT FUD problem goes away, the broader market could recover. In such a case, Binance Coin price could also avoid a fall to $299.

The Moving Average Convergence Divergence (MACD) is still highlighting green bars on the histogram. This indicator is used to identify the strength of the bullish or bearish momentum and suggests a potential reversal of the trend.

At the moment, MACD is indicating that a bearish crossover has not taken place for the last two weeks and could remain that way. If BNB were to bounce off the 50% Fibonacci retracement level and successfully flip the resistance block from $335 to $357, it would invalidate the bullish thesis.

Although such a development could take time, doing so opens the chance of BNB extending its upswing by 13% to $357.