BNB is in the Down Channel, Still Has a Chance to Form a Correction and Go Up Again

Binance (BNB) Analysis

BNB, the original token of the crypto exchange Binance, is currently forming a decline which is still in the Down Channel pattern, where we can still find bullish opportunities from this pattern’s range, where in the long term, this crypto still holds strong bullish potential from a technical perspective, as well as fundamentals.

Now, based on data from CoinMarketCap (CMC), at the time of writing, BNB has a market capitalization of $74,385,859,202 and a daily trading volume of $3,063,304,597 which makes this crypto ranked 3rd in terms of market capitalization. And if we compare it to 2020, the market capitalization has experienced a very rapid increase as new crypto investors are increasingly interested in crypto joining through Binance and also liking the features in it, including the Binance Smart Contract (BSC).

4 Hour Chart Technical

At the time of writing, BNB has fallen quite deeply from the $600 High, which became the market’s psychological point in the bullish view as price reached its new ATH. This has brought the price to fall below the $500 level, and has also brought the price within the Down Channel pattern.

In my technical view, the bulls still have the potential to dominate in the long term, because apart from an on-rallying technical structure, BNB’s fundamentals will still be positive as investors still have an optimistic outlook on crypto with a lot and continue to enter this exchange to trade. , or enjoy other main features to make money.

Here I try to describe it in the 4-hour technical chart below:

Image : BNB/USD Chart

Based on the picture above, the price is in the Down Channel pattern, which now looks capable of heading to the Higher Low level, or moving lower than it, following the range of the Down Channel to find potential for correction based on the Elliot Wave (3-Waves Correction) point of view.

In my view, at this time frame, BNB has Key Support-Resistance (SR) levels that are capable enough for us to use as handles in validating potential trends, namely at the Support levels of $ 363, $ 411 and Resistance of $ 540.

In my Bullish view, the Support levels are the bounce points (end of the correction) to bring the price back on-rally, where a breakdown of them, will have the opposite impact for BNB that we should anticipate.

Daily Chart Technical:

Image : BNB/USD Chart

Also, in the medium-term view, the Binance token still looks well positioned enough to build back on its strength, as the impetus of the previous rally has provided a strong technical basis to keep investors optimistic about BNB.

In view of this analysis, the $363 Support level is the Main Key Support, which is a ‘Validator’ for the Bullish potential, where transaction volatility and potential False Breakouts also need to be anticipated because of how the price reacts to this level, I see it will have a strong impact on the potential long-term trend short and medium.

And for the Bearish scheme, the price continues to fall strongly if it is able to Breakdown this Main Key Support Level, where the price can continue to fall down to the psychological level of $ 300 to find its footing again and try to build Bullish momentum (once again).

And for the fundamental view, the recent days downturn is the result of the US government action which created panic among investors, as has been the case with other cryptos, so we can still expect a recovery, which is supported by the long term strong investor interest in crypto, will keep Binance going. shining, and also its BSC which will continue to lift BNB to positive levels in the long term.

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Article is submitted directly by the author in publishing the analysis, point of view, essay or technical trading of the author. The writing in this article is entirely the responsibility of the author.
Syofri Ardiyanto
Author: Syofri Ardiyanto

Crypto Enthusiast and Investor

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