Binance Coin Price Prediction: Potential Dip Below $700 Before Reversal

Binance Coin (BNB) has shown considerable fluctuations in recent trading sessions, creating interest among market participants. After reaching a high of $861.10 in late July, the price has experienced some retracement, currently hovering near $762.69.

As the market shows mixed signals, analysts suggest the possibility of further downside pressure before a potential reversal. Investors are now closely observing whether the price will dip below the critical $700 support level, which could set the stage for a strong rebound.

Binance Coin Price Key Levels to Watch

The recent chart analysis highlights the formation of a descending channel for BNB, with key resistance near $808 and support near $710. Price action has recently tested the middle of the channel, bouncing around the $762 mark.

This suggests that the market is currently consolidating, preparing for a possible breakout or further downside. The descending trend indicates the potential for a retest of the lower boundary near $710 before any upward movement can be sustained. As such, the price could dip toward the $700 region, where strong buying pressure may emerge.

Source: X

Volume analysis indicates a significant amount of activity, with a spike in trading volume during earlier price increases. This volume surge was met with a pullback, signaling decreased buying interest and resistance at the $765 mark.

With the current volume remaining around $779 million, the market appears to be in a relatively balanced state, but volatility remains a key factor to watch. If BNB successfully holds above $745, it could potentially attempt to break through the $760 resistance level. However, a failure to maintain these levels could result in further declines toward lower support zones.

Technical Indicators: Mixed Signals in Short-Term Momentum

Technical indicators present a mixed outlook for BNB in the short term. The Percentage Price Oscillator (PPO) has shown a bearish crossover, with the PPO line dipping below the signal line, suggesting a decrease in bullish momentum. The negative histogram further indicates that the recent rally has lost its strength.

Unless the PPO reverses its course and moves back above the signal line, a deeper correction or continued sideways action seems likely. The market’s lack of strong upward momentum aligns with the current retracement, which could lead to further consolidation before a major move occurs.

Source: TradingView

Additionally, the Relative Strength Index (RSI) reading of 52.62 signals a neutral to mildly bullish market, with the index having recently dipped below its moving average. This suggests a decrease in buying pressure, yet the RSI remains above 50, which is typically seen as a neutral sign.

If the RSI holds above this threshold, it could indicate the potential for a renewed upward move. However, if the RSI falls below 50, it could add further weight to a bearish sentiment, reinforcing the possibility of testing lower support levels.

Key Levels and Potential for Reversal

As BNB struggles to gain momentum, the critical support zone between $745 and $750 will play a crucial role in determining its next move. A sustained hold above this level could lead to another attempt to break the $760 resistance, with the $808 resistance being the ultimate target.

However, any significant drop below $745 could expose further downside risks, with $710 serving as the next key support. Traders should closely monitor these levels, as they will provide vital insights into the future direction of BNB.

Source: BraveNewCoin

Ultimately, Binance Coin (BNB) remains in a consolidating phase, with the price action influenced by key technical levels and momentum indicators.

The potential for a dip below $700 remains, but a reversal from these levels could signal a strong recovery. As market conditions continue to evolve, traders should remain vigilant, watching for any signs of breakout or further correction based on these established price points.