What does the on-chain data on Binance Coin (BNB) indicate in the price movement during this turbulent process of crypto money markets?
BNB’s On-Chain Data
The popular altcoin BNB has been under the influence of bearish momentum since it reached its all-time high of $691.80 in May 2021. The downward momentum caused the cryptocurrency to decline to $183.40 in June 2022. Since the BNB price fell to the lowest level in the last year, there have been small-scale rises. It is also stated that the cryptocurrency broke out of the long-term horizontal resistance area of $ 345 on November 8. However, it is stated that this positive development will not be enough for upward movement, and the reason is that it has closed below an important critical region. In October, the weekly relative strength index (RSI) fell below 50.
If the downward movement continues, the closest support level for the cryptocurrency may be $ 225. Technical analysis in the daily time frame shows that the BNB price has fallen since the peak on November 8, when it reached $ 398.30. In addition, it is stated that the Binance Coin price is trading within the horizontal support area with 265 dollars in the current position.
BNB Price Forecast
In the event of a possible downward momentum in the price of the crypto currency, the next closest support level may be $ 240. However, considering the weekly time frame, analysts predict that the BNB price may fall to $ 225. It was noted that the movement after the November 9 jump resembles a three-wave structure. The highest price reached after the jump was $ 313. It was then stated that the BNB price entered a descending wedge pattern, which is a bullish pattern. It was also suggested that the fall also resembles a three-wave structure.
As a result, it is stated by analysts that it is likely that there will be a departure in the mentioned patterns, and if one of them occurs, the main target for the future price is $ 316. In addition, due to the downward signs in the weekly time frame, it was suggested that the downward movement is likely to continue.
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