- Binance Coin price saw a bullish breakout three weeks ago, but it failed to sustain.
- As a result BNB could still approach a stable support level at $243, a breakdown of which could trigger an 11% crash to $216.
- A daily candlestick close above $301, however, will invalidate the bearish thesis for the exchange token.
Binance Coin price continues to defy a bullish outlook and slide lower as selling pressure builds up. This development will soon approach a stable support level, a breakdown of which could result in a steep correction for BNB holders.
Binance Coin price in trouble
Binance Coin price printed three lower highs and lower lows since August 12, denoting a bearish trend. On September 28, however, BNB triggered a bullish breakout above the trend line connecting these swing points.
As a result, Binance Coin price rallied 6% but fell short of retesting the $301 hurdle. Eventually this failure turned into a reversal. The ongoing downtrend is likely to sweep below the $257 equal lows and potentially dip lower due to the current market conditions.
The kicker, however, will be the subsequent support level at $243, a breakdown of which could catalyze an 11% downswing to $216. A retest of this lower level is likely to be a good place for accumulation of BNB at a discounted price.
So investors looking to buy BNB should be patient whilst market participants hoping to short Binance Coin price can start hunting for entries.
BNBUSDT 1-day chart
While the bearish narrative detailed above makes sense, Binance Coin price needs to shatter and flip the $257 support level into a resistance barrier to confirm it. At the same time there is a chance that a spike in selling pressure that is then rapidly followed by a bounce at this barrier could trigger a sweep of the $301 hurdle.
A daily candlestick close above this level will invalidate the bearish thesis and kick-start an uptrend. This development could see Binance Coin price rally 12% and tag the $337 resistance level.
Note:
The video attached below talks about Bitcoin price and its potential outlook, however, this is still relevant as it is likely to influence Binance Coin price.
