Binance Coin (BNB) is approaching a long-term support level close to $280 but has yet to show any clear bullish reversal signs.

BNB has been falling since reaching an all-time high price of $691.80 on May 10 2021. It created a lower high of $669 (red icon) in Nov 2021 before resuming its downward movement.

The decrease took the price down to a long-term ascending support line in Jan. This initiated a bounce, which however was short lived. On May 5, the price broke down from the support line and has reached a low of $289 so far. 

The closest support area is near $270, created by the May 2021 lows.

Technical indicators in the weekly time frame are bearish. The main reason for this is the fact that the RSI has now fallen below 50 (red icon). The cross above 50 of the weekly RSI (green icon) preceded the entire upward movement towards the all-time high. 

Additionally, the MACD is falling and is nearly into negative territory.

The main support area for BNB is at $280, as previously outlined. This is also the 0.618 Fib retracement support level. If it fails, the 0.786 Fib retracement support level would be at $170.

Technical indicators in the daily time frame support the continuation of the downward movement towards the aforementioned support area.

The main reason for this is the decreasing MACD and RSI, and the breakdown of the latter from its ascending trend line (red icon). 

Additionally, the RSI is well below 50 and the MACD is negative.

The two-hour chart shows that BNB has been following a descending resistance line since May 6. Due to the bearish readings from the daily time frame, the most likely scenario would indicate a rejection from this line, which would lead to the continuation of the downward movement.

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here

The post Binance Coin (BNB) Breaks Down From 348-Day Support Line appeared first on BeInCrypto.

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