Binance Coin (BNB) price is in a downward correction and has fallen below the moving averages. Currently, the selling pressure has eased as the altcoin is undergoing an upward correction. Since May 25, the upward correction has ended at the $340 resistance zone.
On the upside, Binance Coin may have reached the high of $420 if the current resistance is broken. At the time of writing, the cryptocurrency is trading at $303. On the downside, the altcoin has fallen below the moving averages. It is expected to continue its sideways movement between $280 and $330. However, if the bulls break out above the 21-day line SMA and hold there, the altcoin will continue to oscillate between the 21-day line SMA and the 50-day line SMA for a few more days.
Binance Coin indicator reading
The altcoin is at level 43 of the Relative Strength Index for the period 14. Altcoin is in the bearish trend zone. Binance Coin is below the 40% area of the daily stochastic. This indicates that the market is in a bearish momentum.
Technical indicators:
Major Resistance Levels – $700 and $750
Major Support Levels – $400 and $350
What is the next direction for BNB?
BNB/USD is in a downward correction as resistance at $340 needs to be overcome. BNB will continue to fall if the bears fall below the previous low at $259. Meanwhile, on May 12 downtrend, retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that BNB will fall to the 1.272 Fibonacci extension level or $207.51.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
Source: https://coinidol.com/binance-coin-downward-correction/