- Binance coin price is set to drop significantly as markets take a step back on Monday.
- BNB price is set to break below the low of August.
- Expect some slowdown but no real price catchers as BNB drops to $212.50.
Binance coin (BNB) price is set to drop massively as Fed chairman Powell’s harsh rhetoric about bringing down inflation hurting the financial system still shakes global markets. Risk investors, of course, do not like these kinds of words and are pulling their cash out of the market, drying up some asset classes with a lack of supportive cash to push price action higher. Instead, a big risk is that cryptocurrencies are set to shed another billion or so in market cap as Binance price could start flirting with the lower end of its $200-range.
BNB price set to lose 22% of the value
Binance coin price action is having a nightmare this morning as initially, bulls tried to push price action back above the 55-day Simple Moving Average but failed miserably. With that firm rejection, bulls have handed over the keys to the car to bears, and they are planning to drive this car straight into the pool. The only element that could slow down this drop are two monthly pivots, but those do not hold any real substantial relevance or historical importance.
BNB price is thus first set to slip, once the line in the sand at $272 is broken. From there, a small rappel towards the monthly pivot at $266 is unlikely to be enough to make bulls buy the dip. Instead, the monthly S1 support at $230 could hold some psychological relevance as support because of the round number, although $212, is more likely to catch the falling knife, printing a 22% loss on the way down.
BNB/USD Daily chart
With the start of the new trading week, the negative shadow could fade no Tuesday and further over the week. In such a scenario, expect a turnaround – based on no real logic and price action popping back above $280. Once that is accomplished, a rally back towards $310 or even $320 could be feasible.
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