• Binance Coin price seems to be stuck, producing lower highs since August 10.
  • The recent development has led to a descending triangle formation that forecasts a 13% crash to $224.
  • A daily candlestick close above $301 will invalidate the bearish thesis for BNB.

Binance Coin price has been on a downtrend for quite some time and has intensified after the recent sell-off in Bitcoin price. Investors need to pay close attention to the BNB’s moves over the last three weeks, which revealed a bearish setup.

Binance Coin price has one chance to avoid another selloff

Binance Coin price has produced four lower highs since August 10 and the swing lows of these moves have managed to produce roughly equal lows at $241 and $257. When trend lines are drawn connecting the last two lower lows and equal highs, it reveals a descending triangle in formation.

Another retest of the equal lows at $257 will confirm this setup that forecasts a 13% downswing, determined by adding the distance between the widest part of the triangle to the breakout point at $257. The theoretical forecasting method reveals a target of $224.

While this target seems a little far-fetched, investors can expect a 10% drop from the current position at $269 to the $243 support level. Only a breakdown of this level will indicate a further continuation of the downtrend for Binance Coin price.

Therefore, investors need to pay close attention to Binance Coin price’s reaction at $257 to understand where the altcoin will head next.

BNB/USDT 1-day chart

BNB/USDT 1-day chart

On the other hand, if Binance Coin price absorbs the incoming selling pressure and overcomes it with a surge in bullish momentum, things could change for the better. If BNB produces a daily candlestick close above $301, it will invalidate the bearish thesis by producing a higher high and shift the narrative favoring the bulls.

However, after this move, buyers need to maintain this momentum to propel Binance Coin price to $337.

Note:

The video attached below talks about Bitcoin price and its potential outlook, however, this is still relevant as it is likely to influence Binance Coin price.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

FTX’s ex-CEO Sam Bankman-Fried confesses failure of oversight, says “unknowingly commingled funds”

FTX’s ex-CEO Sam Bankman-Fried confesses failure of oversight, says “unknowingly commingled funds”

FTX’s founder claimed that he was unaware of Alameda’s position, which led to the subsequent collapse. Sam Bankman-Fried had earlier blamed FTX’s downfall on “messy accounting” that emanated during the Terra-Luna collapse.

More Cryptocurrencies news

Avalanche price remains submerged, but bulls can come out on top if this happens

Avalanche price remains submerged, but bulls can come out on top if this happens

Avalanche price may be setting up for one more decline targeting the halfway point of the 2020-2021 bull run. Despite this fact, the bulls are showing efforts to refute the bearish stronghold. The $14 price zone is crucial for defining the next directional rally.

More Avalanche news

Hedera Hashgraph (HBAR) Price Prediction: Countertrend bulls seem poised for more gains

Hedera Hashgraph (HBAR) Price Prediction: Countertrend bulls seem poised for more gains

Hedera Hashgraph price shows potential to rally a bit higher before the bears flex their power again. Based on the confounding technicals, HBAR could rise by 12%. Hedera Hashgraph price has rallied by 18% on the month.

More Hedera news

Why the Ethereum price could rally back to $1,375

Why the Ethereum price could rally back to $1,375

Ethereum price has investors watching closely as the recent recovery could be the start of a much larger move. As the bulls trot higher, subtle signs suggest the ETH price could continue to rally. A breach below $1,214 would make void ETH's bullish potential.

More Ethereum news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP