Hit by a descending triangle breakdown, Binance Coin was scavenging for near-term support levels to cut its losses. While the world’s second-largest alt would be up for some gains when the broader market turns risk-on, overhead resistance levels could make its ascent could arduous. At the time of writing, BNB traded at $394, down by 2% over the last 24 hours.
Binance Coin 4-hour time frame
Binance Coin was unable to maintain its upwards streak in the second week of February, following a 20% hike between the 3-5 February. An untimely descending triangle developed as bulls set their sights on a tight cluster of supply between $440-$445. The token was currently experiencing the aftershocks of a breakdown, with a throwback to $407 unable to change the state of affairs.
Even though the RSI was close to oversold readings, BNB wasn’t close to a safe buy zone for long calls. Instead, the only lifeline BNB currently had was at the daily 20-SMA (red), which floated around the $400-mark. The MACD was expected to pressurize BNB further after slipping below the half-line.
Binance Coin Daily Time Frame
Over to the daily chart, Binance Coin has formed three higher lows since late January. Should bulls maintain the streak, the next higher low would be between 61.8% and 38.2% Fibonacci levels. This would allow bulls another chance to retest $445, although moving past the 50-SMA (yellow), 200-SMA (green), and daily demand zone of $530-$502 would require an external catalyst.
Meanwhile, BNB’s troubles were apparent on its indicators. The RSI was rejected above 50 and its current reading played in favor of sellers. Furthermore, the MACD was nearing a bearish crossover after the price failed to progress above $440.
Save for a 4-hour oversold RSI and a shaky looking daily 20-SMA (red), bullish investors had little to go on. Considering Binance Coin’s staunch price barriers above $400 and Bitcoin’s latest correction, bullish speculations could take a back seat until a more solid defense is found.