BNB (BNB) Price Is Poised to Drop Further, Here’s Why?
The BNB (BNB) price is currently trading at the support level of the range but has broken below the short-term pattern. It is expected to continue decreasing in the near future.
The BNB (BNB) price broke below the important support area at $221 on August 17, indicating a continuation of the downtrend. A subsequent recovery helped the price reclaim this area on August 29 with a large bullish candle. However, this turned out to be a deviation (green ellipse) as the BNB price fell back below the $221 area in the following 2 days.
Since then, the BNB price has been trading within the range of $205 to $221. Currently, it is right at the support level of the range.
The daily RSI indicator has formed a bullish divergence throughout the period of price trading within the range. This is a bullish signal, often leading to a trend reversal to the upside.
However, the RSI indicator has broken below this bullish divergence line on October 9. Invalidating bullish signals often leads to a sharp decline.
Furthermore, such breakdowns in the RSI often lead to similar breakdowns in price action.
Therefore, there is a possibility that the BNB price will break below the current range and decrease to the next significant support level at $185.
The 4-hour chart supports the likelihood of further decline on the daily timeframe. This is because the BNB price broke below an ascending triangle and confirmed it as resistance on October 10 (red arrow).
This pattern has a target of $192, found by measuring the height of the pattern at the breakdown point.
Technical indicators suggest that the BNB price will break the current range and decrease further. The nearest target is $192 and lower towards $185.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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