Although the price of Binance Coin (BNB) broke over a descending resistance line, it has not yet managed to retake a significant horizontal resistance level. The future trend may be determined by whether it is effective.
Overall, Binance had a successful 2022 despite the lingering bear market in cryptocurrencies. First, Changpeng Zhao, CEO of Binance, tweeted that he would sell all of his FTT tokens, ultimately leading to the demise of the competing company FTX.
This announcement caused the bank run that marked the beginning of FTX’s demise. In addition, Binance unveiled the Cristiano Ronaldo NFT line and established a $1 billion market recovery fund to support struggling cryptocurrency businesses.
The exchange is buying Gopax, one of the biggest exchanges in South Korea, according to more recent rumors about Binance. The announcement caused BNB, the BNB chain’s native token, to rise.
Since peaking at $398.30 on November 8, the BNB price has dropped below a declining resistance line. On December 17, the decline reached a low of $220.
The BNB price bounced and created a lengthy lower wick, confirming the $222 support area (green icon). Due to the subsequent upward rise, the digital asset broke out from a declining resistance line on January 5, 2022.
Despite the breakout, the Binance Coin price has yet to rise above the $261 support level. The future trend could be affected by whether it passes muster or is rejected instead. In contrast, a rejection would cause a decline and a retest of the $222 region. A good breakout might trigger a quick push into $318.
Therefore, the response to the $261 region will be necessary for the future price analysis of Binance Coin.
Final Correction Is Visible In The Wave Count
The daily chart’s technical analysis predicts an uncertain future, but the six-hour graph is more positive. The first justification for this is the potential for a finished A-B-C correction as of November 2021. The ratio of waves A to C is 1:1, typical of such corrective structures.
Additionally, the resulting overlap (red line) implies that the downward movement of the BNB token is not impulsive.
The second explanation is the movement over the $252 minor resistance level, which is now supported. Within the next 24 hours, the area might be examined once more. Additionally, it corresponds with a support line that has been increasing since December 18.
Thus, if the price does not close below the support region, the price analysis of the Binance coin can be viewed as optimistic.
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To sum up, whether the price of Binance Coin breaks out over $261 or breaks down below $252 will define which way the price trend will go, and a breakout is significantly more likely based on the present price movement.