The cryptocurrency market has been dealing with a lot of volatility over the past couple of days. Although the surge in price dragged the digital assets out of a consolidation phase, the correction has been pushing the price of altcoins down. The third-largest cryptocurrency with a market cap of $39.86 billion, Binance coin [BNB] was trading at $256.78.
Binance Coin [BNB] one-hour chart
Source: BNBUSD on TradingView
The above chart of BNB highlighted how the price of the digital asset was on a gradual downtrend. After hitting $270 the price saw a further drop and was currently at $259.18.
At the time of press, the coin found support at $254.48 and has been holding onto this level. Given the bearishness in the market and the strength of the BNB market, we may be looking at a period of consolidation.
Reasoning
The BNB market was noting a sudden surge in volatility as the correction set in. However, the market has turned bearish since it started to trend lower, but the selling pressure increased as the asset encountered a sudden drop.
However, the buyers were trying to stabilize the price of BNB and pushing it higher from the support. This was indicated by the Relative Strength Index that had dipped in the oversold zone but had now reversed. The value of the indicator was still close to the oversold zone but was pointing towards the equilibrium zone.
Crucial levels
Entry-level: $258.95
Take profit: $270.65
Stop-level: $251.27
Risk to Reward: 1.52
Conclusion
The Binance Coin market may have suffered a strong correction but the price has been holding above support at $254.48. Despite the bearish signs in the market, the value of BNB may move sideways as the remaining crypto market recovers.
