You probably know BNB, the cryptocurrency that is at the center of attention of users of Binance† Owning BNB gives you access to multiple benefits: reduced transaction costs, better commissions on referrals, use all the features of the launchpad and the launchpool and other benefits! So you have understood that the leader of the exchange platforms of the crypto ecosystem manages to give an important utility to the BNB† However, what about the price of the asset today? To determine the path the token could take in the coming months, let’s now turn to our charts.
This analysis of BNB is presented to you in collaboration with the Coin Trading and Its Algorithmic Trading Solution finally accessible to private individuals†
BNB at its ultimate support?
What we can see on a monthly scale is the explosion that the BNB experienced after releasing the monthly resistance to $32.9† If we take the rise to the all time high, the price is multiplied by 21! Thereafter, the BNB lateralized for several months, registering a low at $211,7 and a pivot zone (shown in blue) at $355/$380. When the price is above this zone, there is a greater chance of a return to the highs. On the contrary, when the price loses the pivot zone, a return to the low of the lateralization zone should be considered.
You see, we are currently at the ultimate support where the price had returned in May 2021. It is clear that a End of the monthbelow this level, a . will strong bearish signal† It will demonstrate the inability of the buyers to keep the price above the $211.7. But what would happen in the context of a bearish close realization? Technically, the price should correct the February 2021 move, which was an overextension of the price upwards. So, on a monthly scale, if there’s one level to keep in mind, it’s the monthly resistance from 2019 to the end of 2020 which is located at $32.9†
In the context of a continuity of the sales force in the markets given the context unprecedented macroeconomics, galloping inflation and rising interest rates, nothing is impossible. At BNB, however, this seems pessimistic to some. Given its leadership position as an exchange platform, the burning mechanism to eventually reach a stock of 100 million BNB, as well as all the utilities given to the token, we could see a further drop of 84%?
A possible rebound before we go down?
You could see it, the BNB is currently on monthly support. In addition, on a weekly basis, the previous close was saved down to a few dollars. Could this be a sign of a return of buyers? Or a simple buyer trap before returning to lower price levels? Theoretically, we could expect a bounce in BNB in the near term. Finally, the buying volume is very low given the current context of the financial markets. If we break below we can identify an intermediate level at $46. This is a former weekly resistance below which the price stalled for several weeks before moving higher.
Conversely, an uptick in price would be a potential opportunity to sell with a short (all with interesting risk management). The market is bearish on the monthly and weekly scales on the BNB. So, unless there is a new order, any rebound should be seen as a price correction before starting to fall again. In this regard, it seems relevant to keep in mind the high of USD 260 on the BNB. This level used to be support, but could act as resistance if the price takes a bullish bounce in the near term. However, a return to $322 seems far too optimistic. In addition to an increase of 50% on assetsa pullback confirming the bearish breakout has already occurred in the month of May.
BNB for $32.9? A scenario that is not absolute
with medaily scale, we can fine-tune the scenarios and identify new areas where the price could react to a larger decline. First of all, it seems relevant to me to maintain the scenario of a rebound that will not be of great magnitude. So, although one should keep in mind that $322, keep your eyes peeled for the $260 area. The chart shows the scenario of a rejection in this area before turning lower. Yet it is quite possible to have almost no buying pressure. So the breakout of the current zone could come sooner than expected and push BNB to levels not seen since early 2021.
What we also have to take into account is that, in addition to the level on $32.90, there are two day zones. A first $133.5 and a second to $74.8† During the strong rally, these are the only two areas where price has consolidated. So it is complicated to have other technical areas. What is important to understand is that: technical analysis is not an exact science and price has no obligation to return to these levels.
Can BNB take the elevator down?
I rarely use indicators to analyze assets and make decisions. however, the volume indicators are very interesting and offer a more detailed approach to price movements. In this case, you will see the use of the VPVR (Visible Range Volume Profile)† This indicator represents the volumes traded on BNB for each price level visible on the chart. So you can find out for yourself, some areas have greater trading volume than others.
What does that mean? The levels at which BNB has been trading for several months have allowed the asset to build real technical zones where buyers and sellers are located. However, the bullish explosion created a significant price zone on the asset with very low volumes. This area is called the LVN (Low Volume Node). Two reactions are possible here: a buy response to reject the refund of the prize on the LVN. The second reaction is a bearish outbreak as powerful as the bullish breakout that happened before.
What we should be concerned about is the lack of buying momentum. Are these out of breath? Or are they worried about the macroeconomic context and therefore not interested in buying BNB for the time being? Finally, if there is one thing to mention with the Visible Range Volume Profile, it is that within the identified LVN, the zones of greatest volume merge with the two previously identified demand zones. This also confirms our earlier statements.
Yes, this cryptonugget is already expiring! Now you’ve got your hands on all the key levels to keep in mind on the BNB in the coming months. So lean in for a return of buyers and a multi-week recovery in the asset before going back down. You can also opt for a powerful drop that is coming very soon. One thing is certain: when the fall comes, it will prove powerful. Whether on a monthly, weekly or daily scale, the downward trend. Opting for a definitive asset recovery would thus be (too) optimistic and decorrelated from the current situation in the financial market.
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