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Why Binance Coin (BNB) Short-Term Price Outlook Is Not Necessarily a Reason to Cheer

2 mins
17 November 2022, 16:00 GMT+0000
Updated by Geraint Price
17 November 2022, 16:00 GMT+0000
In Brief
  • BNB was rejected by the long-term $345 resistance area
  • It is trading above support at $265
  • BNB is trading inside a short-term descending wedge
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The Binance Coin (BNB) price is trading inside a short-term bullish pattern. While a breakout from it seems likely, the long-term trend indicates another nosedive will eventually occur.

BNB is the native token of the cryptocurrency exchange Binance, led by Changpeng Zhao. BNB decreased since reaching an all-time high price of $691.80 in May 2021. The downward movement led to a low of $183.40 in June 2022. 

The BNB price has been increasing since. On Nov. 8, it seemed to break out from the long-term $345 horizontal resistance area. However, it failed to sustain its upward movement and closed below the area. 

Additionally, the weekly RSI decreased below 50. 

If the downward movement continues, the closest support would be at $225.

Binance Coin (BNB) Weekly Outlook
BNB/USDT Chart By TradingView

Will BNB Price Sustain Bounce?

The technical analysis from the daily time frame shows that the BNB price has fallen since reaching a high of $398.30 on Nov. 8. The decrease was sharp, creating a very long upper wick (red icon), a sign of selling pressure.

The Binance Coin price currently trades inside the $265 horizontal support area. This is the 0.618 Fib retracement support level and a horizontal support area. 

While the area did initiate a bounce (green icon), the increase has already been retraced. Moreover, the daily RSI is below 50, a bearish sign. 

If a breakdown occurs, the next closest support would be at $240. However, due to the readings from the weekly time frame, the BNB price may fall to $225.

Binance Coin (BNB) price Support
BNB/USDT Chart By TradingView

Relief Rally Prior to Breakdown?

The movement after the Nov. 9 bounce resembles a three-wave structure. The highest price reached after the bounce was $313. Afterward, the BNB price decreased inside a descending wedge, a bullish pattern. The decrease also looks like a three-wave structure. 

As a result, a breakout from it is likely. If one occurs, the main target for the future price is at $316, giving both upward movements a 1:1 ratio (white). The BNB price has been relatively neutral over the past 24 hours, potentially consolidating for the upcoming breakout.

However, due to the bearish readings from the weekly time frame, the continuation of the downward movement is likely afterward.

Binance Coin (BNB) Price Short-Term
BNB/USDT Chart By TradingView

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.