Is Binance Coin Targeting $20? (BNB/USD Price Analysis For April 25)

Binance Coin (BNB): Trends and Highlights for April 25, 2019

• The price broke out from the resistance on Apr 19.
• It reached a high on Apr 20.
• Since then, BNB/USD has been trading inside a descending channel.
• There is support near $20 and resistance near $25.

Descending Channel

The price made an hourly low of $23.62 on Apr 19.  Several market cycles have been completed. Each low has been lower than the previous one. Tracing these lows gives us a descending support line:

The price of BNB made a high of $25.82 on Apr 20. It has been on a gradual downtrend since, making several lower highs. Tracing these highs gives us a descending resistance line. Taken together, the support and resistance lines combine to create a descending channel:

It is likely that the price will trade inside the confines of this channel until a decisive move occurs. In order to predict the direction of this move, Binance Coin must be analyzed on a longer time frame alongside technical indicators.

Previous Movement

On Apr 2, BNB price reached a high of $22.10 and closed at $19.98. This range was reached five more times. Each time, price subsequently dropped below the resistance. This changed on Apr 18 when price broke out of the resistance. The breakout occurred with slightly above average volume. Furthermore, the volume has dropped over the last week alongside the price. Based on the movement of price and the volume of BNB traded, we believe that price is likely to decrease to the resistance area. Price could drop to between $19.98 and $21.10 within the next several days.

Resistance and Support

To better assess possible future price levels, we incorporate resistance and support areas into the analysis on a different time frame. Below, we trace the price of BNB throughout the month of April at six-hour intervals:

Using these intervals, we find a support area between around $20 and $20.50. This falls within the range of the resistance area traced in the last section. It is likely that the price of Binance Coin will drop toward this level and possibly reach it within the next several days. On the other hand, a rebound could lead prices to the support area of around $25. We believe this scenario to be unlikely.

Summary of Analysis

The price of Binance Coin experienced bullish gains that pushed the price to highs of over $25 last week. Price has since been falling. While the price is still hanging around $23, we believe that it will drop to around $20-21 within the near future. Where do you think will happen to the price of Binance Coin?  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.