Binance Coin Price Forecast: BNB bulls might have played their hand here with risk of a 10% drop


  • Binance Coin price sees bulls hitting an important level as RSI is overbought again.
  • BNB enters a risky game where price action could be at risk of fading near 10%.
  • Traders will watch what the daily close brings to see if equities can push higher.

Binance Coin (BNB) price sees bulls playing a risky game as in early morning trading this Tuesday during the ASIA PAC session, $323.80 got hit and immediately saw price action drop lower. This level was marked up from the tops of June of last year and has been, although chopped up, still holding some relevance when it comes to tops or closes. If bulls took too much profit and gave bears a chance to enter, a drop below $300 would not be impossible. 

Binance Coin sees bears playing a different game as they are still around

Binance Coin price hit $323.80 this Tuesday morning in the ASIA PAC session. This does not tell us much if it was not for the fact that this level has been pivotal since June of last year. Indeed, although it has been broken to both the upside and the downside, it has held throughout that period a certain relevance with several closes either above or below it and often halting any upside breaks. Seeing the current fade of over $10, it becomes clear that bears are not gone, they are just sidelined and waiting for the right moment to strike.

BNB, thus, could be at risk of stalling soon as bears certainly will have had $323.80 marked up and were present to blow up the sell-side offers at that level. Bulls will have gotten trapped a bit, and the fade could only gain in strength as, at the same time, the Relative Strength Index is back bang on the level of being overbought. This means that new investors and bulls will want to wait before entering the price action as upside potential is limited, which could spark another sell-off toward $280 with the 200-day Simple Moving Average (SMA) as the level of vital support.

BNB/USD daily chart

BNB/USD daily chart

A closer look at current market trends and conditions shows that markets have been detoxing a bit from the US Dollar. Even Monday night, it became clear that equities are the tailwind for cryptocurrencies. When US stocks jumped higher, seconds after that my alerts were buzzing for the top three cryptos popping higher. If equities can repeat that rally, that could be enough for BNB to pierce through $323.80 and head toward $336.50.


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


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP