Binance coin’s upward movement was obstructed as the coin saw a correction set in the market. The value of BNB collapsed by 23% in five days. The market has been recovering; at press time, and BNB was being traded at $514.73.
Binance Coin 6-hour chart
Source: BNBUSD on TradingView
The above chart of Binance Coin indicated that the price was correcting within a descending channel. Towards the end of the channel, the price broke down and hit the support at $427. This falling price turned the market bearish but the price has been witnessing an upward surge.
However, it may not be enough to flip the trend to a bullish one, as sellers were also entering the market.
Reasoning
Bollinger Bands were beginning to diverge, indicating high volatility. The signal line was moving over the candlesticks, suggesting that the price was heading lower. If the price fails to hold on to the support at $518, the price may break down once again to the support at $427.
Relative Strength Index which was near the equilibrium zone was now pointing lower. This suggested the entry of more sellers in the market, which was affirmed by the falling momentum in the market. Awesome Oscillator had dropped under zero, indicating that there could be another drop visible in the market.
Crucial levels
Entry-level: $510.96
Take Profit: $463.39
Stop-level: $542.41
Risk to Reward: 1.51
Conclusion
The current Binance coin market suggested an evolving selling pressure. This pressure could lead the price of the coin to drop to its next support and offer trading benefits to short-traders.
