With gains of over 850% since the beginning of the year, Binance Coin posted a strong performance in the first half of 2021. Its spectacular rise to the top of the crypto rankings has been compared to Wall Street giants like Amazon and Apple. Some believe that the smart chain would even overtake the traditional assets mentioned above in the years to come.
However, the native cryptocurrency BNB still has a long way to go. Currently, the asset has been largely dwarfed by one more dominant force – Bitcoin. The collapse of the king coin on May 19 had a detrimental impact on the price of the BNB, as it lost 50% of its value in just one day. The bulls have been in recovery mode since then, but the market has remained vulnerable to periodic corrections.
Binance Coin daily chart
A look at Binance Coin’s 12-hour chart revealed that the cryptocurrency was struggling to successfully rise above its May 20 swing high of $ 430. After the last attempt to break the upper ceiling was rejected by sellers, the BNB switched to a downtrend and moved within a descending channel. The channel has been predicted to hit a defensive line of $ 260 where a breakthrough to the upside can be expected.
Relative Strength Index reversed its trend when the BNB was denied a break above USD 430 after its last attempt. The index has made lower highs in the past few days and appeared to be rejected above 50 at press time. This could be a major warning sign of limited upside potential, especially if the RSI continues its way into the oversold zone.
The bullish momentum has not yet fully accumulated Ingenious oscillator. A certain level of neutrality was also on MACD but the same was nearing a bullish crossover at the time of writing.
With the RSI moving south and MACD and AO not yet having to fully convince observers of a bullish market, the BNB would likely move within its downward channel in the coming days. Visible Range showed that trading activity was highest in the $ 260 area, but a healthy number of trades were also placed around $ 340.
If broader market signals trigger a break below the BNB support of $ 315, the crypto asset could find a safe haven between its demand zone of $ 210-260. A recovery from this critical area could break the pattern and push the BNB back towards $ 430 and 200-SMA (green).
Binance Coin’s downward channel was predicted to hit lower levels in the coming days as its technicals did not yet support a bullish result. The price could drop further to a strong support line at $ 260 where a rally back towards the $ 430 resistance is expected.
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