Binance (BNB) has lost crucial support following a huge surge that hit the entire crypto market yesterday. This surge could lead to more dip if the current weekly low fails to hold strong for a major recovery.
The crucial $300 support level, which acted as a strong support level for the past three months has finally collapsed due to the latest red in the past two days. In the process, BNB lost more than 10% to exactly $272 yesterday.
Aside from that, the slight breakdown that occur below the ascending wedge last week now looks more noticeable due to the recent fall. The price is now heading towards the lower boundary of the main channel, which has been sustaining a bullish movement for a year.
If the lower boundary provides support one more time, BNB could see a bounce and reactivate a bullish pattern towards the upper boundary of the ascending channel. In case a such setup comes into play, BNB could produce at least 50% profit from its pick-up price.
However, a drop below this channel could cause a serious decline to around the yearly low before it stops bleeding and decides on where next to head for. The price is so weak right now as the bears eye more low levels. Although it is trying to recover some losses before it initiates another drop.
In total, BNB has recorded over 20% loss since the price started to drop in April. Due to this loss, its market cap has currently dropped to $44.5 billion but remains the 4th best-performing coin.
BNB Key Level To Watch
Following a minor recovery above the $283 level, it touched $285.8 today. It may encounter resistance at $300 if the price increases. The $310 and $318.4 resistance levels will be a major obstacle for buyers if they push higher.
Following a bearish continuation, the support levels to pay attention to are $270 and $261. The key support level for rebound lies at $256.
Key Resistance Levels: $283.2, $300, $310
Key Support Levels: $270, $261, $256
- Spot Price: $285.5
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: igorigorevich/123RF // Image Effects by Colorcinch
