fxstreet.com
- BNB price has retraced 50% of the current downswing.
- Binance coin price has a tapering volume pattern.
- Invalidation of the downtrend is a breach at $392.
Binance coin price is providing reasons to believe in another downswing towards $175.
Binance coin price is in a make-or-break position
Binance coin price could be due to more decline as the technicals hint at subtle bearish control. Binance coin price has retraced 50% in a very sharp and short period of time, a textbook marker for zigzag corrections within wave three price action. Binance coin price is now finding resistance at the 50% Fibonacci level as the price trades at $302. The next hurdle for BNB price will be the 61.8% Fib level of $324.
Binance coin price also shows contrarian bearish signals as the current uptrend increases on relatively low volume. The volume pattern could be evidence of a lack of interest from the bulls at these price levels. The relative strength index does not provide enough evidence on the daily chart to open a short position, but traders should be on the lookout for new bearish evidence as early as Monday morning.
BNB/USDT 4-Hour Chart
Invalidation of the bearish downtrend lies at $392. If the bulls can breach this level, the BNB price could continue rallying to $600, resulting in a 100% increase from the current BNB price.