Binance Coin technical analysis: Risks further falls on head-and-shoulders breakdown
- Binance Coin (BNB) is one of the weakest across the crypto space on Saturday.
- Technical setup favors BNB bears in near-term, eyes on $ 28.60/ 27.80 levels.
Binance Coin (BNB/USD), emerges one of the biggest losers among the top 20 digital currencies traded so far this Saturday, having shed over 6% during the last 24 hours. The bears retain control amid reports that Binance, the world’s largest cryptocurrency exchange by trading volume, has warned users it’s investigating an alleged leak of verification data, as cited by Forbes.
However, Binance's widely respected Chief Executive Changpeng Zhao, often known as CZ, played down the "leak," suggesting it is an attempt to damage Binance and other crypto businesses.
Despite the conciliatory remarks by CZ, the sentiment around the coin remains bearish in the near-term, as reflected by the technical chart.
BNB/USD 1-hour chart
- Sellers in complete control on Head-and-Shoulders (H&S) break down.
- Downside targets are aligned at 28.61 (200-HMA) and 27.00 (zero figure).
- Immediate upside could see 29.85 (H&S neckline) tested, above which bears guard 30.50.
BNB/USD daily chart
Source: Trading view
- A potential symmetrical formation is spotted on the daily sticks.
- At press time, the bias appears natural to bearish.
- A test of ascending trend line support at 27.75 is on the cards.
- Bulls are likely to face stiff resistance near 31.80 region.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
