Last week’s recovery in Binance coin (BNB) price was rejected from a descending trendline. However, a recent news that Binance coin has implemented its first quarterly Auto-Burn favors the BNB investors. The auto burn resulted in removing a total of 1,684,387.11 BNB from its circulation, including the 6296.305493 BNB burned during the Pioneer Program Burn.
Key technical points:
- BNB coin bears threaten to engulf the 200-day SMA
- The daily RSI line fails to enter the bullish territory
- The 24-hour trading volume in the Binance Coin is $2.12 billion, indicating a 7.5% gain.
Source-Tradingview
Recently when we covered an article on Binance Coin, this BNB/USD pair bounced back from the 0.618 Fibonacci support level and began a V-shaped recovery in its chart. However, the price couldn’t overcome the combined resistance of $500 crucial resistance level and a descending trendline.
This resistance trendline has been interrupting any bullish attempt since the correction rally began in December 2021. Until this trendline is intact. the price will continue its downward rally.
On January 5th, the intense sell-off in the crypto market triggered a fallout from the crucial support. The BNB price chart showed four consecutive red candles, which caused a 15.5% loss in price value.
With the Ongoing selling, the BNB coin has reverted to retest the 200 SMA line. If the coin sustains this EMA support, the price could again rechallenge the dynamic resistance trendline for a bullish breakout.
This daily Relative Strength Index (41) slope rejected from the neutral(50) si falling back to the oversold region.
BNB Price Trying To Sustain Above $450 Mark
Source- Tradingview
Before this down rally could reach the current lower low support of $400 , the BNB price has to face confluence support of 0.5 FIB level and $450. Violating this strong area of interest, the price action will provide more confirmation to extend its correction phase
The Average direction momentum index(23) showed a significant drop in bearish momentum due to the recent recovery. However, the slope has started to rise again as coin price continues its fall again.
- Resistance levels: $500, $570
- Support levels: $450, $400
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/binance-coin-price-analysis-under-the-influence-of-descending-trendline-bnb-price-extends-its-correction-rally/