Binance Coin (BNB) tries to find support after rejection

Binance Coin (BNB) was rejected by a descending resistance line on Feb. 15 and is currently attempting to find near-term support.

Double lace pattern

BNB has fallen since hitting an all-time high of $691 on May 10th. Another uptrend then started, leading to a slightly lower high on November 6th. It formed two highs (red symbols) in what is considered a bearish reversal pattern.

BNB has steadily declined since then.

Technical indicators are showing mixed signals and are trending down as both the RSI and MACD are declining. While the MACD has managed to stay above zero, which is considered a bullish sign, the RSI has fallen below 50.

Weekly BNB/USDT Chart | Source: TradingView

BNB failed to break out

The daily chart shows BNB bouncing off the $335 horizontal zone (green symbol) twice, most recently on Jan. 24.

If there is a breakout, the next area of ​​resistance is $500. This is both a horizontal resistance area and a 0.5 Fib retracement resistance.

However, similar to the weekly timeframe, the technical indicators are neutral/bearish as both the RSI and MACD are bearish.

Daily BNB/USDT Chart | Source: TradingView

The two-hour chart shows that BNB may be moving along an ascending support line. If so, the ongoing upleg will confirm this line for the third time. Therefore, the possibility of a bullish structure and another breakout attempt remains.

BNB/USDT 2 hour chart | Source: TradingView

Count waves

Trader @CryptoTony_ tweeted a chart of BNB and said the price could rally to $500 before a correction.

Source: Twitter

Since the tweet, BNB has fallen slightly. However, the proposed formation is still valid. While the rise since January 24th is certainly a three-wave structure (highlighted), so is the subsequent fall.

Therefore, it is possible that BNB will start wave C soon, which could take it to the $500 level.

BNB/USDT 6 hour chart | Source: TradingView

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

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