Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

As the dust seemingly settled on the altcoin market, Binance Coin (BNB) price took shape in a bearish bullish wedge (yellow). The end of this tight phase can result in a sharp swing in either direction.

With the price finally breaking the baseline (green) of the Bollinger Bands (BB), buyers confirmed the gradual increase in their influence. But with somewhat weak indications on the technical features, buyers need to counteract the high volume selling pressures.

As of going to press, BNB was trading at $315.9, down 2.97% in the past 24 hours.

BNB Daily Chart

Source: TradingView, BNB/USDT

After bouncing back from the $268 support, BNB formed a rising wedge on its 4-hour chart. Now there are two possibilities from this. Should the pattern function as a continuation of the previous downtrend, a further decline is likely. A bearish result would expose the alt to a possible test of the Point of Control (POC, red) before tapering further.

To confirm this outcome, bears should force a close below the lower trendline of the wedge. With the BB looking to curb its current volatility, the potential decline could enter a phase of erosion in the coming sessions.

On the other hand, there are opportunities for the buyers to get in on the $307 support. This trajectory may be possible because of the alt’s recent series of higher valleys. An upward breakout would take BNB to the $357 level in the coming days. A close above USD 326 would increase the likelihood of this rebound.

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Source: TradingView, BNB/USDT

The 4-hour RSI was denied a break above the half-line as it plunged lower to the 44 zone. In addition, the -DI moved parallel to the +DI line suggesting that a bearish trend is still active.

Capital inflows also took a hit as the CMF struggled to cross the zero mark. However, any return from the current support range would confirm a bullish divergence.

Conclusion

Looking at the press time setup, BNB tended slightly towards the sell market. The investors should watch out for a break outside the current pattern to make any calls. Finally, it would be important to keep an eye on Bitcoin’s movement and broader sentiment to complement the aforementioned analysis.



This post Binance Coin [BNB]: Don’t forget these crucial indicators

was published first on https://ambcrypto.com/binance-coin-bnb-dont-overlook-these-crucial-indicators/

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