The first half of June has been a challenging time for BNB holders, as the coin’s value suffered a significant 28.5% drop, falling from a high of $307.7 to a low of $220. This decline came amid Binance’s legal dispute with the U.S. and the recent altcoin crash. In addition, the BNB price broke through the symmetrical triangle pattern, which could hint at a continued downward trajectory.
The breakdown of the triangle pattern seems to have intensified the selling pressure on BNB’s price. A long-wick rejection at $253 serves as an indicator that traders are encountering a high supply. As of now, the intraday trading volume for BNB stands at $745.5 million, which is an 8% loss.Binance Coin’s daily chart also shows that the price breach of the symmetrical triangle pattern’s long-standing support trendline on June 10th has intensified the selling momentum. This pattern has been found in a sideways trend, lasting almost a year.
In the past couple of days, there has been a minor upswing in BNB’s price as it retested the breached support level as potential resistance. Presently, BNB is trading at $248, with a rejection candle indicating that sellers are defending the new resistance level.
If the selling pressure continues, we could see a further decline of 26.5% down to $182.5. Given the bearish conclusion of the symmetrical triangle pattern, BNB’s price is at risk of a significant decrease. Currently, the coin’s price is undergoing a retest phase, which determines if the breached trendline can generate adequate supply pressure. Should sellers maintain their position below the trendline, we can expect BNB’s price to fall further down to the $220 and eventually the $200 levels.
The Average Directional Index (ADX) wavering at 41% indicates instability in the ongoing downtrend, which is why a minor pullback became necessary to rejuvenate bullish momentum. A bearish crossover between the 100-day and 200-day Exponential Moving Averages (EMAs) could potentially attract more sellers to the market.
It’s important to note that the above content is based on the author’s opinion and is affected by market conditions. Crypto traders should conduct thorough market research before investing in digital currencies, as neither the author nor the publication holds any responsibility for personal financial loss.
Source: Coingape
