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The Binance Coin price (BNB) recently broke its all-time high, reaching $36.01 on May 27. Since then, it has been gradually decreasing.
Will the Binance Coin price (BNB) reach yet another all-time high? Keep reading in order to find out:
Binance Coin Price (BNB): Trends and Highlights for June 3, 2019
- Binance Coin price (BNB) reached an all-time high price of $36.01 on May 27.
- It is currently trading inside a descending channel.
- BNB is trading inside a longer-term ascending, broadening wedge.
- It has possibly completed a five wave Elliott formation.
- There is bearish divergence developing in the RSI.
- There is support near $30.
BNB in a Descending Channel
On May 26, BNB/USDT reached a low of $30.91. A rapid upward move commenced and the price reached a high of $36.01 the next day.
Since then, the Binance Coin price (BNB) has been trading inside the descending channel outlined below:
At the time of writing, the price was trading in the middle of the channel.
Next, we will look at technical indicators in a longer time-frame in order to try and figure out its future movements.
Bearish Divergence in an Ascending Wedge
The Binance Coin price (BNB) is analyzed at three-day intervals alongside the RSI below:
Since Jan 2019, the price has been trading inside an ascending, broadening wedge. At the time of writing, it was trading very close to the resistance line of the wedge.
The RSI reached a high in the middle of April and has been generating lower values since. This is in stark contrast with the Binance Coin price (BNB), which has enjoyed significant increases during the same period. This is known as bearish divergence and often precedes price decreases. Furthermore, it is occurring in a long-term timeframe.
Additionally, the three-day candle in which the all-time high price was reached was a bearish doji. It was followed by another bearish candle with a slightly longer body.
While these can be the signs of the beginning of the reversal, we do not have confirmation yet.
A candle close below $29 would give us confirmation that a reversal is underway.
This hypothesis is further supported by the possible five wave Elliott formation that has seemingly occurred in BNB:
If this formation proves to be correct, the Binance Coin price (BNB) will soon begin a reversal.
One support area is traced for BNB in the graph below:
The closest support area is found near $30. It coincides with the support line of the channel.
We stated in the previous section that a close below $29 could be the confirmation that a reversal has begun.
Since there is significant support above that area, we do not believe that the drop will be immediate. Rather, the price is likely to decrease within the confines of the channel before it eventually breaks down from it.
Do you think the Binance Coin price (BNB) will break down from the channel? Let us know your thoughts in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.