Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.
Binance coin [BNB] It ranked seventh on CoinMarketCap and was the largest IPO by market capitalization. It has seen huge gains since the start of 2021. The bear market last year saw the coin drop from $650 in November 2021 to $200 in late June.
Binance was also strong, and most analysts expect this trend to continue. Several years in the future, BNB could be one of the giants of the ecosystem. However, over the next month, the picture wasn’t entirely rosy.
BNB- 1 Day Chart
The support and resistance areas are marked in cyan and red, respectively. In mid-May and early August, the $336 level decisively rejected the bullish efforts. Also, the $300 level was psychologically significant. Therefore, the surrounding area could be a huge battlefield in the ranking books as bulls and bears compete for control.
As of press time, bears have taken control of this area. Earlier this month, a bid to hit $300 was printed, and the $260 area was retested. The market structure has also been bearish for Binance coin since August, when the $300 mark turned into resistance.
This bias will continue for weeks to come. Sell when BNB reaches $300, and look for buying opportunities around $260.
BNB – 12 hour chart
The higher time frame market structure was bearish for Binance coin. This means that on the 12-hour chart, a trader can look for short selling opportunities. A bearish order block has formed near the $300 mark, again highlighted in red.
The confluence of a key level with the H12 order block indicates that short positions can present themselves with a high probability in the coming days. The Relative Strength Index (RSI) was at 55, which was slightly bullish. This was in response to the bounce from $260.
The Magnificent Oscillator (AO) is not yet above the zero line and is showing little bearish momentum. The Accumulation/Distribution (A/D) line has been trending higher since June but has been flat for the past two weeks.
The price action strongly suggested the possibility of selling at the $300 mark. Any move beyond this level would turn the long-term structure to the upside. However, with the price of Bitcoin dropping below the $19.6K resistance level, caution was warranted over the next week.
A move above $20K could also help break the resistance of Binance Coin. Such a scenario would invalidate the bearish ideas presented in this article. Until then, the downside targets will be $260 and $240 after a retest of the $300 area.