- Binance price currently at $27.32
- Price shows a 1.3 percent decline from the day’s opening price
- Price to decline to $26.00 before it can recover.
Binance Coin (BNB) price has fallen below the $28.00 level and has entered a descending channel with the price action moving towards the $26.00 level. The asset is facing high bearish pressure due to the overall negative sentiment in the cryptocurrency markets.
The current price action still shows further downwards movement before Binance Coin price can recover.
Binance Coin price across the daily frames
The daily candles show that the price has entered inside a descending channel heading towards the support level at the $26.00 mark. While the markets ended November with strong bullish momentum aiming towards the $33.00 mark, the trend saw a sharp reversal at the start of December as the bullish momentum vaporized.
The primary reason behind the reversal was the sharp decline in the price of bitcoin as the asset failed to close above the $20,000 mark. With Bitcoin still dominance being above the 60 percent mark, a fall in bitcoin’s price is bound to have a strong impact on the altcoin markets. This was proven true as almost all altcoins turned bearish mirroring the price action of Bitcoin.
On the technical indicators, the Bollinger bands show increasing volatility and expand with the mean line moving down from the $30.00 mark. The MACD shows similar sentiment as the indicator suggests increasing bearish momentum as the two EMAs diverge further. Meanwhile, the RSI hangs low inside the neutral territory.
Overall, the indicators suggest that Binance Coin price will continue moving downwards in the current descending trend. However, the price is unlikely to observe a sharp decline as the current price hovers around the edge of the Bollinger Bands.
BNB price 1-week chart
The weekly chart shows a failed attempt at an upward trend as the price was rejected sharply from $35.00, causing a trend reversal. Since then, the price action has remained bearish retracing towards the $26.00 mark.
Overall, the trend shows low volatility since the start of October as the price stagnated between the $26.00 and the $30.00 price levels. As the Bollinger Bands squeeze, the price action becomes more consolidate and suggests higher volatility in the near future when the band expands. The MACD has turned over bearish and suggests increasing bearish momentum as the two EMAs diverge.
Meanwhile, the RSI is returning to mean point and remains firmly in neutral territory and is not issuing any signal. This suggests that the price movement towards either side would not call for an immediate trend correction.
Traders should expect Binance Coin price to hold at the current support level as all eyes turn towards the price action of Bitcoin. If BTC price fails to stay above the $18,000 mark, the crypto markets might see the trend turning bearish once again.
Binance Coin price can be expected to observe sideways movement at the current price levels before making a break above the $30.00 level.