Binance Coin price could plummet 25% if BNB shatters this critical level
|- Binance Coin price has set up a rising wedge pattern on the daily chart, forecasting a 25% crash.
- A breakdown of the $300 psychological level will kickstart this nosedive to $236.
- Invalidation of this setup will occur if BNB manages to flip the $356 hurdle into a support floor.
Binance Coin price has produced an uptrend, which to the naked eye is bullish. But a closer look reveals a bearish pattern in formation. A breakdown of this setup could catalyze a steep correction for the exchange token.
Also read: Binance Coin price to tank 10% as Bitcoin withdrawal ban is lifted and then reinstated again
Binance Coin price in precarious position
Binance Coin price action since November 27, 2022, has set up four higher highs and three distinctive higher lows. Connecting these swing points via trend lines reveals a rising wedge formation.
This technical formation is a bearish setup and forecasts a 25% downswing on the breakdown of the lower trend line. The target of $236 is obtained by measuring the distance between the first swing high and swing low to the breakout point at $300.
At the time of writing, Binance Coin price is trading at $310, very close to the $300 psychological level. A decisive daily candlestick close that flips this support structure into a resistance level will confirm a bearish breakout.
In such a case, Binance Coin price is likely to hemorrhage, which makes sense considering the bearish outlook of the market.
BNB/USDT 1-day chart
While the outlook of Binance Coin price seems pessimistic, there are chances for buyers to take control and prevent the bearish fate. Due to the sell-side liquidity resting below $300, the chances of a sweep followed by a rally are high.
Even after the liquidity run below $300, BNB needs to overcome $318 and decisively flip the $356 hurdle into a support floor. Doing so, will invalidate the bearish thesis and potentially catalyze buying spree from sidelined buyers.
Such a development could see Binance Coin price aim to tag the $454 hurdle.
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