Chart Pattern Hints the BNB Price is at Risk of Longer Correction; Keep Holding?

Binance Coin Price Analysis: For the past six months, the Binance coin price has been rising under the influence of a rising wedge pattern. The coin price bounced back thrice from the ascending trendline indicating the buyers have been actively accumulating at this support. Amid the recent correction in the crypto market, the coin price tumbled back to this support offering another pullback opportunity to traders. Will BNB price trigger a fresh recovery or will coin holders lose this support amid market uncertainty?

Key Points: 

• A breakdown below the rising wedge pattern’s support trendline may set the BNB price for a significant downfall.
• The 200-day supporting the BNB price keeps market sentiment bullish
• The intraday trading volume in the BNB coin is $389.5 Million, indicating an 11.2% loss

Source- Tradingview

On May 12th, the Binance coin price bounced back from the support trendline of the wedge pattern. The bullish reversal surged the price by 4.3% but couldn’t surpass the immediate resistance of $318 as the market suffered in uncertainty. A breakdown below the rising wedge pattern’s support trendline may set the BNB price for a significant downfall.

Now, in theory, the rising wedge pattern is often considered a bearish continuation pattern as it provides a significant downward movement upon the breakdown of the support trendline.

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Thus, if the candle closes below the lower trendline, the BNB price could witness intense selling pressure. The potential downfall could tumble the prices by 15-17% to retest the combined support of $264 and the long-coming support trendline(yellow).

On a contrary note, a breakout above $318 may trigger a new recovery swing and surge the price by 8% to reach the long-coming resistance trendline(yellow)

Technical Indicators

Moving Average Convergence Divergence: the MACD(blue) and signal(orange) lines getting flat reflect weakness in bearish momentum.

Exponential Moving Average: The coin price wobbling between the 50-and-200-day EMA creates a narrow range of consolidation. 

Binance Coin Price Intraday Levels

• Spot rate: $310
• Trend: Bearish
• Volatility: Low
• Resistance level- $316, $350
• Support level- $300 and $283