By Franklin Smith
Binance Coin (BNB) is the largest exchange coin by market cap, ranking seventh on Coinmarketcap. The alternative token recorded impressive upticks since January 2022.
Meanwhile, the past year’s bear market had the alt plunging from November 2021’s $650 to $200 during late June sessions.
Also, Binance remained steady, and most experts expect the exchange to maintain this trend. The coming years might see BNB dominating the crypto ecosystem. Moreover, the token’s picture in the coming month wasn’t that rosy.
Binance Coin 1Day Timeframe
The resistance and support zones were in red and cyan, respectively. The $336 value area rebuffed bullish moves decisively in mid-May & early August.
Furthermore, the $300 mark represented a psychological level. Thus, the zone around it might be an enormous battlefield as bears and bulls fight for dominance.
While publishing this post, the bears controlled this region. Early sessions this month saw the attempt to extend to $300 fading to trigger a $260 retest. Also, Binance Coin exhibited a bearish market structure since August when it flipped $300 to resistance.
Binance Coin 12Hr Timeframe
Binance Coin exhibited a bearish market structure in higher charts. That meant investors might watch for shorting opportunities on the 12hr chart. Meanwhile, a bearish order block emerged near $300, in red again.
The crucial level confluence with the 12hr order block indicated surged chances of short positions appearing in the coming days. The RSI (Relative Strength Index) stood at 55, reflecting a weak bullish stance. That came as a response to the rebound from $260.
The AO (Awesome Oscillator) was yet to climb beyond the zero level while showing a brief bearish strength. The A/D (Accumulation/Distribution) line maintained upside trends since June but remained flat within the previous two weeks.
Final Thought
BNB’s price action suggested a massive shorting opportunity around the $300 value area. A move beyond this mark would overturn the alt’s long-term market structure to bullish. However, caution remained essential in the coming week as Bitcoin wavered below the $19.6K mark.
A BTC move past $20K might help Binance Coin conquer its immediate resistance. Such a move would cancel the discussed bearish case. Until then, BNB’s downward targets stand at $260 and then $240, following a $300 retest.
Editorial credit: K.unshu / shutterstock.com