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.

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.

Share: Cryptos feed

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.