Binance Coin (BNB): Can buyers form a bottom?

Binance Coin (BNB) has managed to recover and break out of the area of annual lows in the past few trading days.

Despite the recent bad news about The departure of several executives at crypto exchange Binance, the proprietary Binance Coin (BNB) may stabilize above the important support area between 231 US dollars and 220 US dollars for now. At the beginning of the week, the BNB rate about six percentage points firmer at the current level of US$246. One reason is the announcement of the new token sale on the Binance Launchpad. The cryptanalysis company Arkham Research is launching its ARKM token exclusively on Binance on July 17. To qualify for the token-sale, interested investors can lock in their BNB-coins even a few hours before the Arkham Launchpad sale. In the past, this procedure has already led to increased demand for BNB, while simultaneously reducing the pressure to sell.

It remains to be seen whether yesterday's price movement will be short-lived or start to provide a sustained price stabilization. Despite the recent recovery, the chart looks uncertain with potential for further regulatory problems for the crypto exchange. From a chart perspective, the price of Binance Coin must first recapture the yellow resistance area around 254 US dollars to avoid the danger of another sell-off. A drop below the chart level of 239 US dollars would bring the purple support zone around the lows of the past few weeks back into view.

NBB: Bullish price targets for the coming weeks

Bullish koersdoelen: 254/259 USD, 267 USD, 276/281 USD, 293 USD, 301 USD, 314/317 USD, 338/346 USD

In recent weeks, buyers managed to avoid another sell-off to the year's low at USD 220 for the time being. Despite this resistance, the NBB price continues to trade in a bearish flag pattern. The danger of a further sell-off in the coming weeks would only be avoided with a dynamic price rise above the multiple resistance consisting of the EMA50 (orange), the supertrend and the upper edge of the flag at USD 257. If the bulls manage to sustainably recapture this area and the BNB price can then also recapture the horizontal resistance level at 267 US dollars, another move toward the green resistance zone is possible.

If the Binance Coin then continues to jump northward above 281 US dollars, a preliminary short-term decision will be made at 293 US dollars. The EMA200 (blue) is currently running near the turquoise zone. A breakout above it should take the NBB price to the old breakout point at 301 US dollars. This is also the golden opportunity of the current recovery move. A price move south seems quite likely because of the uncertainty surrounding Binance. If, contrary to expectations, the bulls manage to put down a dynamic recovery, another rally toward the last highs around 317 US dollars is possible.

Several times in May, the BNB price failed to overcome this chart level. Only if the blue resistance zone can be durably broken would a rise toward the annual highs between US$338 and US$346 be considered.

NBB: Bearish price targets for coming weeks

Bearish koersdoelen: 239 USD, 231/220 USD, 211 USD, 197/183 USD, 165 USD, 148/124 USD

As long as the bears are able to keep the price of the BNB below the yellow resist zone to avert a breakout from the flag, a price drop should be planned at any time. Even a drop below support at 239 US dollars would significantly increase the chances of a sell-off towards 231 US dollars.

This support level may not be by the buyers. Otherwise, a retest of the year's low at 220 US dollars is imminent. If the price falls below 220 US dollars, a price attack by the possible liquidation of a position of 150 million US dollars in the Venus Lending Protocol.

As a result, Binance Coin is likely to immediately break out to the next target zone between US$197 and US$183. Although a technical counter-reaction could be planned here, the likelihood of a correction widening in the coming trading months would increase significantly. Should the BNB price also leave the 165 US dollar level in the medium term, the Binance Coin could fall back to the support area between 148 US dollars and 124 US dollars.

A look at the indicators

On the 4-hour chart, the RSI indicator recently generated a buy signal with a value of 69, it is not far from an overbought zone. On the daily chart, the RSI has also recovered to the neutral zone between 45 and 55. Although the MACD indicator is currently showing a slight buy signal, it is still trading below the 0 line. On the weekly chart, both indicators also show slight stabilization trends, but continue to trade in bearish territory.

Disclaimer: The price estimates on this page are not buy or sell recommendations. They are merely the assessment.