BNB Price Analysis: BNB Price Nearing $260 Yearly Support; Another Breakdown?
The Binance(BNB) relief rally turned down from the $330 resistance, indicating the prevailing downtrend’s resumption. Thus, the resulting downfall tumbled the altcoin price by 15% as it continued to crawl towards the yearly support of $260.
Key points
- The 20-day EMA provides constant resistance to the BNB price.
- The vortex indicator reflects a bearish crossover in the daily time frame chart.
- The intraday trading volume in the BNB price is $1.79 Billion, indicating a 53% gain.
Source- Tradingview
In April, the BNB/USDT pair witnessed a steady fall under the influence of a descending trendline. However, on May 6th, altcoin breached monthly support of $385, and the recent bloodbath in the crypto market significantly accelerated the selling pressure.
The resulting downfall plunged the BNB price to a low of $218, accounting for a 52.3% loss. However, the long-tail rejection candle reverted the altcoin back above the $260 mark, triggering a minor pullback to the $330.
However, a recent report from Reuter claims that Binance Aided Money Laundering for Billions of dollars caused a considerable sell-off over the past week. Furthermore, on June 1st, altcoin turned down from the $330 resistance and fell 14% down where it currently trades at $283.
Furthermore, sustained selling should lead the BNB price to $260 yearly support. Historically this level bolstered the August 2021 rally, and a possible reversal from it would drive the price above $330.
Alternatively, a daily candlestick closing below the $260 may drop the altcoin to the nearest supply region at $220.
Technical indicator
A sharp spread between the VI+ and VI- slopes after the bearish crossover indicates aggressive selling from trades. Moreover, this crossover should attract additional sellers to the market.
The RSI slope reverted from the equilibrium(50%) indicates the negative sentiment among the market participant remains intact.
- Resistance level- $330 and $385
- Support levels- $260 and $220
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