Bancor (BNT) price fell to a new yearly low on Oct. 13 and the ensuing bounce failed to initiate a reversal.
BNT has been falling since reaching an all-time high of $9.36 in March 2022. The downward price movement was initially contained inside a descending parallel channel.
In the beginning of June, the price broke down from the parallel channel. It accelerated its rate of decrease afterward. This eventually led to a low of $0.39.
The BNT price did bounce afterward, the upward movement was weak. It failed to even reach the support line of the channel (red icons), creating long upper wicks instead.
While the weekly RSI is generating bullish divergence, it is not yet confirmed, since the BNT price has yet to initiate any sort of upward movement.
If the downward movement continues, the closest support areas would be at $0.34 and $0.20.
Bancor Price Fails to Sustain Bounce
The technical analysis outlook from the daily time frame shows that BNT price has been decreasing underneath a descending resistance line since Aug. 8. So far, the line has been validated five times (red icons).
An important development in the price action is the breakdown below the $0.44 area, which had previously acted as support throughout June to Aug. Now the area coincides with the descending resistance line, increasing its legitimacy.
Another interesting development is the bullish divergence in the RSI (green line). While that has been growing since June, it seems that the trend line is now broken.
So, the most likely scenario would be the continuation of the downward movement.
If by some chance a BNT price breakout occurs, the closest resistance area would be at $0.54. This is the 0.5 Fib retracement resistance level and a horizontal resistance area.
New Yearly Lows Expected
To conclude, the most likely scenario for the BNT price is the continuation of the downward movement towards $0.34.
Alternatively, a breakout from the descending resistance line and reclaim of the $0.44 area would invalidate this bearish price prediction.
It would instead indicate that the Bancor price may reach a high near $0.54. However, that would still not make the long-term trend bullish, and another eventual downward movement would still be likely.
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