Binance Coin’s [BNB] breakdown beneath $300 means traders can prepare for…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
The uncertainty around Binance USD [BUSD] continued after Paxos, a partner of Binance, was ordered to stop minting the token. This came from the New York Department of Financial Services and sparked panic among investors.
How much are 1, 10, 100 BNB worth today?
Binance Coin [BNB] also saw selling pressure mount in recent days. The news surrounding Paxos and BUSD affected the sentiment behind the exchange token of Binance. Technical analysis showed that further losses were likely.
Source: BNB/USDT on TradingView
The recent sell-off saw BNB crash beneath $300. In the past few hours of trading, the price witnessed a bounce from $287. This level had previously served as support on 20 January, before Binance Coin’s push toward $315 and higher.
The failure to break out past the ascending triangle warned traders that a downturn was imminent. The plunge beneath $320 happened on 9 February. On 13 February, the asset retested the same zone at $320 as resistance before the next leg down to $287.
The Directional Movement Index on the four-hour chart showed a strong bearish trend in progress. The -DI and the ADX lines (red and yellow respectively) were above 20. This was in agreement with the price action.
The move below $320 broke the H4 market structure and flipped it to bearish. At the time of writing, the bias remained bearish, but a fair value gap was spotted. Highlighted in white, it extended from $295 to $305.
Hence, it was likely that $300-$305 would be retested soon as resistance before another move downward. On the other hand, the bearish structure will be broken if Binance Coin can
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