- Binance Coin price to close this week is in the red, making it the second week in a row with a loss.
- BNB sees consolidation unfolding with a lower high and higher low.
- Expect a 10% and 20% drop once support breaks down next week.
Binance Coin (BNB) price sees its longer-term rally starting to roll over as the support element pushing price action needs to step in for a third week in a row. This indicates more pressure building on the 55-day Simple Moving Average (SMA), which could soon snap under selling pressure. When that happens next week, expect to see the drop halt either near 10% or 20%, depending on the severity of the selloff.
Binance Coin price to consolidate first then slide
Binance Coin price is set to tank into next week as this week is pointing to a consolidation phase. Buyers and sellers are being pushed toward one another as from both sides; pressure is building. With lower highs and higher lows, a breakout moment is set to unfold, and in this case, it could break the support at the 55-day SMA near $318.
BNB will see this scenario unfold because the trend is starting to shift, and in the past few weeks, two red candles were always followed with a sharp selloff. Once the 55-day SMA has been broken, another leg lower would mean that BNB trades near $300 at the 200-day SMA. If that same 200-day SMA snaps, an accelerated selloff could be seen toward $257 as a pivotal level well respected in the fall of 2022.
BNB/USD weekly chart
The 55-day SMA could still underpin price action and catalyze a bounce higher quickly. To do so, at least the high of last week needs to be broken. This means that Binance Coin price will test the peak of early April near $353 and could be set to pop higher.
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.
Recommended Content
Editors’ Picks
Coinbase lists WIF perpetual futures contract as it unveils plans for Aevo, Ethena, and Etherfi
Dogwifhat perpetual futures began trading on Coinbase International Exchange and Coinbase Advanced on Thursday. However, the futures contract failed to trigger a rally for the popular meme coin.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the Securities & Exchange Commission (SEC) and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US Federal Bureau of Investigations (FBI) has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission (SEC) is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?