Supply Pressure at Key Resistance Puts BNB Price at 8-14% Downside Risk

Binance Coin Price Prediction: The Binance coin price walked a sideways trend since last year showing the formation of a symmetrical triangle pattern. Under the influence of this pattern, two converging trendlines are directing the ongoing price action in BNB price. However, the increased selling pressure at the pattern’s resistance trendline indicates the coin price is likely to witness a temporary correlation.

Key Points: 

• Rejection signs at the overhead resistance trendline put the Binance coin price at risk for an 8% correction
• The 200-day EMA at $300 increases the support strength at the $300 level
• The intraday trading volume in the BNB coin is $927 Million, indicating a 34% gain

Source- Tradingview

By the press time, the Binance coin price trades at $327 with an intraday loss of 0.74%. However, the prices moving just below the chart pattern’s resistance trendline are witnessing high supply pressure evidenced by the long-wick rejection candle.

This rejection candle increases the possibility of a bearish reversal and triggers a new bear cycle within the pattern. Thus, with sustained selling, the coin tumbled 8% and hit local support of $300. If the price breaks the aforementioned support, the price may revisit a lower support trendline.

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Anyhow, the triangle pattern is intact and the BNB price will remain in a sideways trend.

A potential breakout from either of the trendline will release the trapped movement and trigger a direction rally on the respective sets

Technical Indicators

Bollinger Band: the coin price trades hitting the upper band of the Bollinger band indicator higher possibility for price reversal.

Relative strength index: the daily RSI slope sustained above the midline keeps the overall price sentiment bullish

Binance Coin Price Intraday Levels

• Spot rate: $326
• Trend: Bearish
• Volatility: Medium
• Resistance level- $340 and $360
• Support level- $300 and $283