Binance Coin (BNB) Price Under FUD Pressure: Will It Retreat to $220 Support?

Amid the rising indecisiveness in the crypto market, the Binance coin price has witnessed a sideways trend for the past three weeks. This consolidation of around $240 with short-bodies and long wicks indicates no initiation from buyers or sellers. However, despite a highly volatile behavior, the coin price respects the inverted flag pattern formation, characterized by a steady downfall and an upward channel to replenish bearish momentum. Will this chart setup bring major correction in the fourth largest cryptocurrency? 

Also Read: Binance Expands Support For Dogecoin, DOGE Price Rally To $0.1 Coming?

Binance Price Daily Chart

• The higher price rejection candle on August 8th indicates a high supply zone at $248.3
• A breakdown below the support trendline will trigger a major correction in BNB
• The intraday trading volume in the BNB coin is $510.2 Million, indicating a 19% gain

Source- Tradingview

By the press time, the Binance coin price traded at $244.6 and continued with its sideways action in a narrow range. The daily chart showed multiple Doii-type candles which project uncertainty among market participants.

Currently, the coin price is resonating between the horizontal resistance of $248.3 and the rising trendline of the flag channel. Until these two levels are intact, the consolidation mode in the BNB will be extended longer.

Considering a bullish outlook, if the coin price gives an upside breakout from the $248.3 resistance, the buyers will get a strong footing to rise higher. The potential upswing could raise the altcoin 9% higher to reach $270.

[converter id=”bnb-binance-coin” url=”https://coingape.com/price/converter/bnb-to-usd/?amount=1″]

Will Rising FUD Push BNB Price Back to $200?

In theory, the inverted flag pattern is known to extend the correction trend upon the breakdown of the channel pattern. If the coin price breaks below the lower support with a daily candle, the bearish will intensify. The post-breakdown fall would tumble the prices to $220, followed by $200. 

• Bollinger Band: The narrow gap of the Bollinger Band indicator reflects high volatility in the crypto market
• Directional Moving Index: A bullish crossover between the DI+(blue) and DI-(orange) slope hints at increasing buying pressure in the market.