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Binance Coin price slides lower on Monday as dark clouds hang over crypto

  • Binance Coin price tanks on Monday in a global crypto decline.
  • BNB to find support soon as cooldown does not mean a bad thing.
  • The RSI is due for an unwind as price action got overheated over the weekend.

Binance Coin (BNB) price is sliding lower this Monday as what appears to be quite a global descent for most major crypto and alt currencies. The leg lower makes sense though as price action grew overheated over the weekend with a late rally on Sunday that pushed the Relative Strength Index (RSI) nearly into overbought territory. Expect a small leg lower with support soon to kick in so that the RSI eases a bit before seeing price action swinging back up again.

Binance Coin price needs to give a little to get big

Binance Coin price could shed about 3% this Monday in search of support as BNB is taking a small step back in early trading. The move did not come as a surprise as on Sunday price action swung substantially higher and dragged the RSI toward the overbought area. With profit-taking underway, expect to see a fade toward $330.

BNB can then find support at the monthly pivot before heading back higher as early as the US trading session later this Monday. Even if the fade goes a leg lower toward $323.80, the blue line could act as a halt for the fade as that is where the rally started on Sunday. The rally should reboot itself and break the high of Monday near $340 to head toward $345.

    
BNB/USD  4H-chart    

BNB/USD  4H-chart    

The bigger risk for the price action on Monday is on the weekly chart. BNB is showing more bearish signs. Should pressure build upon the 55-day Simple Moving Average (SMA), a break lower could easily add up to a 10% loss as the 200-day SMA is trading near $297. The break of the psychological level  of $300 could mean that more downside will come as plenty of bulls will start to offload further.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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