BNB Price Forecast: BNB bulls show signs of weakness

Source Fxstreet
  • Binance Coin was rejected at the resistance level of $612.5 and closed below the ascending trendline, indicating a potential downturn.
  • Technical indicators back a downward trend as bearish MACD and RSI align.
  • A daily candlestick close above $612.5 would invalidate the bearish thesis.

Binance Coin (BNB) is trading slightly above $578 on Friday after being rejected at a crucial level and closing below the ascending trendline. This breakdown indicates a shift in market structure from bullish to bearish. Technical indicators also support this bearish outlook, showing a bearish crossover that suggests a possible downtrend.

BNB is poised for a downturn following break below uptrend line

BNB faced repeated rejection at its daily resistance level of $612.5.As of Tuesday, it retested this level, declined over 5% until Thursday, and closed below the ascending trendline (drawn by connecting multiple low levels since early August). At the time of writing on Friday, it trades slightly above $578.7, retesting the trendline breakout level.

If the broken trendline around $580 is resistant, BNB's price could extend its decline by 8% to retest its October 3 low of $534.3. A successful close below this level may lead to a further 12% drop toward the next support level at $471.3.

The daily chart's Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover on Wednesday, giving a sell signal. Additionally, red histogram bars are also rising and below the neutral line zero, suggesting the downward momentum is gaining traction. 

The Relative Strength Index (RSI) indicator also aligns with the bearish outlook. It reads 47, below its neutral level of 50, indicating bearish momentum is rising.

BNB/USDT daily chart

BNB/USDT daily chart

However, if the Binance Coin price rallies and closes above its daily resistance level of $612.5, it would create a higher high for the short-term uptrend. In such a scenario, the next target could be the June 10 high of $674.8.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
Jan 04, Thu
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
US NFP Forecast: Nonfarm Payrolls expected to grow below 200K in December for third straight monthThe US jobs report could influence the market pricing of the Fed rate outlook and the US Dollar valuation.
Author  FXStreet
Jan 05, Fri
The US jobs report could influence the market pricing of the Fed rate outlook and the US Dollar valuation.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, Mon
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Will Amazon Q4 Guidance Disappoint Again?Insights - On October 31, after the U.S. market closes, e-commerce giant Amazon (AMZN) will release its Q3 2024 earnings report.
Author  Mitrade
Oct 31, Thu
Insights - On October 31, after the U.S. market closes, e-commerce giant Amazon (AMZN) will release its Q3 2024 earnings report.
placeholder
Gold price holds steady near all-time peak, below $2,800 ahead of US PCE Price IndexGold price (XAU/USD) is seen oscillating in a narrow range during the Asian session on Thursday and consolidating its recent strong gains to a record high.
Author  FXStreet
Oct 31, Thu
Gold price (XAU/USD) is seen oscillating in a narrow range during the Asian session on Thursday and consolidating its recent strong gains to a record high.
Related Instrument
goTop
quote