- Binance Coin hits a barrier at $27, prematurely ending the bullish case for new yearly highs.
- BNB whales are confident that the crypto will resume the uptrend.
Binance Coin appears to be prematurely abandoning the mission to hit new yearly highs as explored extensively earlier in the week. However, the trading in the last 24 hours has been impressive, with over 10% in gains accrued. Yet, on hitting resistance at $27, the token has embarked on a downtrend again. BNB is trading at $26.18 at the time of writing amid a growing bearish grip, as emphasized by the Relative Strength Index (RSI).
BNB/USD hourly chart
-637354955696497789.jpg)
How far can this downtrend go?
At the moment, odds seem to be in favor of the bears. To ensure that BNB does not continue with the downtrend and dent the progress made over the last week, buyers must hold above short term support at $24. A rising wedge pattern could make things worse for the bulls if the trendline support is shattered. The move could boost selling pressure in such a scenario, forcing BNB below a crucial support at $22 and $20. The bearish leg could also quickly refresh levels at the primary support ($18).
BNB/USD 4-hour chart
-637354956498846595.jpg)
Another possible scenario is consolidation taking over, with the price remaining pivotal between $24 and $27. The sideways trading is brought to light by the leveling RSI in the 4-hour range. On the other hand, if the 50 Simple Moving Average makes a golden cross above the 100 SMA, BNB could altogether ignore the push for declines to $18 and resume the uptrend aiming for $30.
Binance Coin whales doubling down on the uptrend
According to data by Santiment, a leading on-chain analysis platform, holders of 100,000 to 1,000,000 BNB coins are stocking up in anticipation of the price to rally to new yearly highs (as discussed before). Whales are significant players in the market because of the volume of coins they move. This volume tends to pull the price either up or down.
BNB holder distribution
-637354957150410840.png)
Overall, the price is trending lower, especially when short time frames are considered. Support at $24 would go a long way in stabilizing the token. As more whales increase their holdings, Binance could eventually resume the uptrend towards new yearly highs. For now, it is essential to wait for a confirmed breakout or breakdown before going all-in on BNB.
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