Binance Coin (BNB) has ricocheted off long-term Fib support at $ 268 and is trading in a symmetrical triangle.

The direction of the next move has yet to be determined and will likely be decided based on whether the BNB falls below the triangle’s support line.

The long-term movement of BNB.

The BNB has fallen since hitting an all-time high of $ 691.77 on May 10. The decline continued until it hit a low of $ 211.70 on May 23.

The rally then left a long wick below, confirming the USD 268 area as support. This is the 0.618 Fib retracement support that measures the entire uptrend that started in March 2020.

Currently, the BNB is trading at $ 285, just above that support.

Despite the recovery, technical indicators are falling. The MACD is about to cross negative territory, the RSI is below 50 and the stochastic oscillator has created a bearish cross.

Weekly BNB / USDT Chart | Source: TradingView

Neutral model

The daily chart shows that the BNB has traded within a symmetrical triangle since it first hit on May 19th. It last rebounded from the pattern’s support line on May 21.

The day’s close is extremely important as the NBB can create a bullish engulfing candle if it can maintain current levels until the day’s candle closes.

However, while the symmetrical triangle is often viewed as a neutral pattern, it follows a downward movement. This makes it more likely that you will encounter a problem.

In addition, the technical indicators are falling. The MACD has shown a bearish reversal signal, the stochastic oscillator has created a bearish cross, and the RSI is below 50.

If it does crash, the BNB will likely retest the $ 200 mark. Conversely, the closest resistances are at $ 395 and $ 508. These are the 0.382 and 0.618 Fib retracement resistor values.

BNB / USDT daily chart | Source: TradingView

Trader @TheEuroSniper sketched a BNB chart and said it could fall to the $ 170 level, and that would require a break from the current symmetrical triangle.

Source: Twitter

Count waves

The number of waves indicates that BNB is in wave B of the ABC correction.

However, the exact shape of wave B is still unclear.

The first scenario shows that wave B is in the shape of a symmetrical triangle, as shown above.

If so, BNB could retest the triangle’s resistance line before breaking it.

A rise above the recent high of $ 340 (red line) invalidates that particular wave count.

BNB / USDT 6-hour chart | Source: TradingView

The second scenario suggests that wave B is contained in an ascending parallel channel. In this case, the BNB can rebound towards the channel resistance line at $ 390 before breaking through.

The wave count will be void if the price drops below the July 20th low of $ 254 (red line).

So a decline below $ 254 or an increase above $ 340 will likely set the direction of the trend.

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.

SN_Nour

According to the Leg crypto

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