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Why Binance Coin price could wipe out all gains made this month

  • BNB price has breached the ascending parallel channel.
  • Binance Coin price is seeing an uptick in volume.
  • Invalidation of the downtrend scenario is a breach at $375.

Binance Coin price could be setting up for a plummet back to $217. 

Binance Coin price falls short

Binance Coin price has breached the ascending parallel channel to start this Friday's trading session. This week, it was mentioned that the future for BNB price was highly dependent on the directional breakout from the channel. The uptrend witnessed last week, which brought the BNB price to $350, was a corrective rally. The bears now have justifiable reasons to send the BNB price back to the origin point of the trend channel at $294 and possibly further into the May 12 lows at $217.

Binance Coin price hints at a further decline in the volume indicator. The subtle ramping pattern on the 8-hour chart warrants more downside as the candles are printed outside of the ascending trend channel. Furthermore, the Relative Strength Index provided an exit signal as the BNB price topped precisely at the sellers' 65 level and formed a second divergent top around the $330 price level. When combined, a $210 target could be reached in the coming days as the final downslide capitulation before the highly anticipated countertrend rally occurs.

TM/BNB/5/26/22

BNB/USDT 8-Hour Chart

Invalidation of the bearish uptrend lies at $375. If the bulls can breach this level, they could reconquer the macro trend and potentially send prices as high as $480, resulting in over a 50% increase from the current BNB price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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