Binance Coin price rise to come to a halt after just 20% increase in three weeks
|- Binance Coin price is set to witness sideways movement after the rally loses its steam.
- The potential of a correction is likely, which would bring BNB down to bounce back from $231.
- If the altcoin gains steam again, a breach of $264 can be expected, which is marked by the Fair Value Gap of $264 to $272.
Binance Coin price, which had been gradually making a recovery, was expected to reclaim the losses that it endured in June. However, the lack of demand for the cryptocurrency left BNB stuck with no gains, even at a time when the entire market was rallying.
Binance Coin price rise disappoints
Binance Coin price, trading at $246 at the time of writing, has noted a 20% rally since mid-October. The three-week gains are among the lowest witnessed in the crypto space. The altcoin did save itself from falling to June 2022 lows after already establishing fresh year-to-date lows.
However, given that the Relative Strength Index (RSI) is inches away from breaching the 70.0 threshold to enter the overbought territory, it seems like BNB holders might have to suffice with the 20% gains they witnessed recently. While RSI breaching 70.0 is not necessarily an indication to sell, it does suggest investors stop accumulating as corrections could occur at any time.
Plus, with the rally running out of steam, the Binance Coin price could end up slowing down now, resulting in sideways movement. But if investors and traders decide on booking gains, seeing the lack of bullishness, the price could correct.
This would send BNB correcting to $231, from where Binance Coin price could bounce back. In the event that it fails to bounce back and instead invalidates the support of the $231 line, further decline is likely, and the altcoin could slip to $219.
BNB/USD 3-day chart
Nevertheless, given the broader market cues are still bullish, a gradual increase could bring Binance Coin price closer to its next crucial barrier, marked at the $264 to $272 range. This area serves as a Fair Value Gap (FVG), and breaching this resistance would invalidate the bearish thesis.
At the same time, reclaiming it as support would also enable Binance Coin price to breach a higher FVG, marked from $286 to $302.
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