- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.