Crypto Nugget: Is BNB on the brink of an unprecedented decline?

You are probably familiar with BNB, the cryptocurrency that is at the center of users of Binance. In fact, owning BNB gives you access to several benefits: reducing transaction costs, getting better referral commissions, taking advantage of all the opportunities from the launch pad and launch pool, and more! Thus, you have understood, the manager of the exchange platforms in the crypto ecosystem manages to provide an important benefit to BNB. But what about the price of the asset today? To determine the path that the token can take over the next few months, let’s now go to our charts.

This analysis of BNB is offered to you in collaboration with Coin trading and its algorithmic trading solution finally available to individuals.

BNB on its ultimate support?

BNB cryptocurrency price against dollar on a monthly scale
The price of BNB against the dollar on a monthly scale (1 million)

What we can see on a monthly scale is the explosion that BNB experienced after releasing the monthly resistance against $ 32.9. If we take the climb to the highest point, the highest point ever, the price has been multiplied by 21! Then BNB lateralized for several months, recording a low of $ 211.7 and a pivot zone (shown in blue) at 6 p.m. $ 355 / $ 380. When the price is above this zone, the chances of returning to the heights are greater. On the contrary, when the price loses the pivot zone, a return at the low point of the lateralization zone must be considered.

You can see we are currently at the ultimate support where the price was returned in May 2021. It is clear that a End of the monthbelow this level will be one strong bearish signal. It will demonstrate buyers’ inability to keep the price above $ 211.7. But what would then happen in connection with a realization of the bearish close? Technically, the price should correct its movement in February 2021, which was an over-extension of the price to the upside. Thus, on a monthly scale, if there is one level to keep in mind, it is monthly resistance from 2019 to the end of 2020 which is located at $ 32.9.

Within the framework of a continuity in the sales force in the markets in relation to the context unprecedented macroeconomics, galloping inflation and rising interest rates, nothing is impossible. But with BNB, this may seem pessimistic to some. In fact, given its leading position as an exchange platform, its firing mechanism to eventually reach a supply of 100 million BNB, as well as all the supplies given to the token, could we see a further decrease of 84%?

A possible rebound before going lower?

BNB cryptocurrency price against dollar on a weekly scale
The price of BNB against the dollar on a weekly scale (1W)

You could see it BNB is currently on its monthly support. In addition, the previous closure on a weekly basis saved a few dollars. Could this be a sign of the return of buyers? Or a simple buyer trap before returning to lower price levels? Theoretically, we could expect a jump in GDP in the short term. Finally, the volume of purchases is very low given the current context in the financial markets. If we break down, we can identify an intermediate level of $ 46. This is a previous weekly resistance during which the price stalled for several weeks before rising.

Conversely, a recovery 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 scale of BNB. Thus, unless there is a new order, each rebound must be seen as a price correction before it starts to fall again. In this context, it seems relevant to have the level of $ 260 on BNB in ​​mind. Previous support, this level could act as resistance if the price indulges in a bullish jump in the short term. But having a return to $ 322 seems overly optimistic. In addition to an increase of 50% on assetsa withdrawal confirming that the bearish eruption has already taken place during the month of May.

BNB to $ 32.9? A scenario that is not absolute

BNB cryptocurrency price against dollar on daily basis.
GDP price against dollar on a daily scale (1D)

with l ‘daily scale, we can refine the scenarios and determine new areas where the price may react in the event of a major fall. First of all, it seems to me relevant to maintain the scenario with a rebound that will not have large amplitude. Thus, though, one must keep in mind $ 322, keep your eyes open for the $ 260 range. On the chart, you can see the scenario with a rejection in this area before it drops lower. Nevertheless, it is quite possible to have almost no buying pressure. Thus, the eruption of the current zone may come faster than expected and bring GDP to levels we have not seen since the beginning of 2021.

What we also need to keep in mind is that in addition to the level of $ 32.90, there are two daily zones. One more $ 133.5 and another second $ 74.8. During the sharp recovery, these are the only two areas where the price has consolidated. Thus, having other technical areas is complicated. What is important to understand is this technical analysis is not an exact science and price has no obligation to return to these levels.

Could BNB take the elevator down?

BNB cryptocurrency price against dollar on a daily scale using Visible Volume Range Profile
The price of BNB against the dollar on a daily scale using VPVR (1D)

I very rarely use indicators to analyze an asset and make decisions. However volume indicators is very interesting and provides a more detailed approach to price movements. In this case, you can see the use of VPVR (Visible Range Volume Profile). This indicator represents the quantities traded on the BNB for each price level visible on the chart. So you can find out for yourself, some areas have a larger trading volume than others.

What does it mean ? The levels at which BNB has been trading for several months have enabled the asset to build real technical zones where buyers and sellers are located. However, the bullish explosion left an important price zone on the asset with very low volumes. This area is called the Low Volume Node (LVN). Here are two reactions possible: a buying reaction to reject the return of the price of the LVN. That second reaction is a bearish outbreak as powerful as the bullish eruption that occurred beforehand.

What should worry us is the lack of buying momentum. Are these out of breath? Or are they concerned about the macroeconomic context and therefore currently have no interest in buying BNB? Finally, if there is one thing to mention with the visible Range Volume Profile, it is that within the identified LVN, the zones with the largest volume coincide with the two demand zones identified earlier. This therefore confirms our previous statements.

Yes, this cryptocurrency is already ending! Now you have in your hands all the most important levels to keep in mind over the next few months on BNB. So lean in for a return of buyers and a recovery of several weeks in the asset before going down again. You can also choose a sharp drop that is coming very soon. One thing is for sure: if the fall comes, it will prove to be powerful. Whether on a monthly, weekly or daily scale, the downward trend is. Choosing a final recovery in the asset would therefore be (too) optimistic and decor-related from the current situation in the financial market.

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