The depreciating value of Bitcoin pushed altcoins down too. Binance Coin [BNB] tried to maintain its consolidation at $330; however, a strong sell-off pushed the price under support. As BNB lost support, it dropped by another 32% and hit $223.
BNB found support at this point and the price took a U-turn. It has recovered 28% since the monthly low and was currently trading at $288.47.
Binance Coin hourly chart
Source: BNBUSD on TradingView
The above chart highlighted the sudden shift in volatility in the market and price breaking down. On its way down, BNB price established levels of support at which it was consolidated. These consolidation levels were where the traders were most active and this could help BNB on its journey upward.
However, it may be a while before BNB recovers from this loss.
Reasoning
The price has climbed through two levels of support that had previously helped it gain stability. The price was being supported at $284, while resistance remained close at $296. This resistance has been tested once and BNB was unable to breach it. As the asset moved once again to test this level, the market was suggesting reducing bullishness.
As the price was in recovery mode, MACD line crossed over the signal line, suggesting high upward pressure in the market. However, MACD histogram was showing reduced bullishness as the bars shortened. This could mean the price has reached an acceptable range for trading.
Similarly, Relative Strength Index was noting that BNB was pulled out of the oversold zone and was currently above the equilibrium level. This meant that the buying pressure had remained dominant in the market.
Conclusion
Binance Coin’s price was set on the path of recovery. Despite the price appreciation to $288, BNB may continue to move sideways as traders gain stability. Visible Range highlighted that the traders were actively engaging at the current price level, thus BNB may trade within $284 and $296 for some time.
