Analysis

Binance Coin (BNB) is forming a double bottom at $335

Binance Coin (BNB) has regained footing after a sharp decline towards support and appears poised to start a short-term rally.

Important price zone

On May 10, BNB hit an all-time high of $692 before crashing. After a long period of consolidation, it rose again but only peaked at $669 on November 7th. Since then it has fallen by 45%.

The move down led to a local low of $336 on Jan. 24. It also served to confirm the $335 area as support. This area previously acted as resistance (red icon) in July 2021 before turning into support (green icon) in September. Therefore, BNB could bounce back from here.

Source: TradingView

Future movement

Trader @CryptoTony_ tweeted a BNB chart and said that it is likely to bounce off the $325 horizontal support area.

The source: Twitter

Technical indicators for the daily time frame are yet to confirm that a bullish reversal is imminent. However, the daily RSI shows an oversold level of 20. The RSI is a momentum indicator and readings below 30 are generally considered to indicate an oversold market.

This reading is even below the July 2021 low (red icon) before a significant move higher.

If BNB can emerge from here, the next resistance is at $503. This is the 0.5 Fib retracement level and horizontal resistance area.

Source: TradingView

The two-hour chart shows BNB deviating above the $387 resistance area (red circle) before falling back below it.

The trend since January 22 looks like an ABC corrective structure. Therefore, this time frame supports the possibility that the trend remains bearish.

 Source: TradingView

Count waves

The number of waves isn’t entirely clear, but there are two main possibilities as to what could be happening from here.

The first possibility suggests that price action since the July 2021 low is part of an incipient crossover wave. In this case, the continuous decline since November 2021 is just a correction and BNB will eventually move towards new highs.

 Source: TradingView

The second possibility suggests that the entire BNB decline since April was part of a major ABC correction (white). In this case, BNB completes the fourth sub-wave (red) of a 5-wave bearish impulse and could continue falling to $200 after a bounce.

A move above the low of sub-wave 1 (red line) at $510 will invalidate that particular wave number.

Source: TradingView

With both scenarios suggesting that BNB is likely to rise in the short term, the shape of the upward move will help determine which wave number is correct.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Bitcoin Spot ETF Inflows Hit $3.38 Billion Setting Record

Bitcoin Spot ETF Inflows reached $3.38B last week, a new record with 7 weeks of…

2 hours ago

ZA Bank Crypto Service Now Available to Retail Investors

ZA Bank crypto service has been launched for retail users to help them trade Bitcoin…

4 hours ago

$2.9M Raised, 214M Tokens Sold: Why Qubetics, Arbitrum, and Stacks Are the Best Cryptos to Buy Today?

Discover the best altcoins to buy ahead of December 2024. Learn why Qubetics, Arbitrum, and…

8 hours ago

BlockDAG’s $20M Surge in 48 Hrs Powers It Towards $600M, as Ethereum Faces Resistance and Cardano Shows Potential

Discover how BlockDAG is moving towards a $600M goal amidst Ethereum’s price challenges and Cardano’s…

9 hours ago

Best Altcoins to Buy Ahead of December 2024: Turn $2K Into $429K, Don’t Miss Out on the Altcoin Boom of 2024!

Discover the best altcoins to buy ahead of December 2024. Qubetics presale skyrockets, Celestia gains…

11 hours ago

Miami Truck Driver’s Journey with Solana: Made Millions from a $15K Investment! Can BlockDAG Show Similar Growth?

Explore how a Miami trucker turned $15K into $94M through Solana, and his next focus…

11 hours ago

This website uses cookies.