BNB Price Poised for 18% Fall as Market FUD Rises

Binance Coin Price Prediction: Amid a recent allegation against Binance, the World’s largest crypto exchange, and its CEO Changpeng Zhao (CZ) for breaking derivatives rules in the United States, the BNB price witnessed a certain selling pressure from market participants. The coin price decreased by 9.3% since last week, falling from a peak of $340 to its current price of $308. However, considering the bigger picture, this downfall is within a famous chart pattern called a symmetrical triangle. Here’s how this pattern may influence Binance coin’s future price.

Key Points: 

• The Binance coin price will continue a sideways trend until the triangle pattern is intact.
• A bearish reversal from a downsloping trendline encourages BNB price for an 18% fall.
• The intraday trading volume in the BNB coin is $389.5 Million, indicating an 11.2% loss

Source- Tradingview

In the weekly time frame, the Binance coin price is actively resonating within two converging trendlines. This sideways trend has lasted for over a year and shows the formation of a symmetrical triangle pattern.

In theory, this period of consolidation could offer a short break to traders before they continue with the prevailing trend. This pattern provides a trading opportunity when the asset price gives a decisive breakout from either of the converging trendlines.

As of now, the BNB price has recently turned down from the overhead trendline, triggering a bear cycle within the pattern. Ideally, this bear cycle plummets the coin price to the pattern’s lower support trendline, indicating the BNB coin is at risk for a 16-18% downfall.

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As this technical setup favors prolonging the prior price trend, the BNB/USDT pair is more likely to breach the lower trendline.

Having said that, a price breakout from the aforementioned trendline will be the determining factor for the future trend.

Technical Indicators

Relative strength index: Despite the sideways price action, the weekly-RSI slope shows apparent growth, which accentuates the underlying strength of a price trend. This bullish divergence shows a higher possibility for the BNB coin to end the triangle pattern on a bullish note.

EMAs: the BNB price trading above 200-Weekly EMA keeps the overall market trend bullish.

Binance Coin Price Intraday Levels

• Spot rate: $310
• Trend: Bearish
• Volatility: Medium
• Resistance level- $318, $340
• Support level- $300 and $283