Binance Coin (BNB) Could See Double-Digit Dip If Key Support Fails to Hold: Analyst Reveals Bears’ Target
A crypto analyst is sounding the alarm on Binance Coin (BNB), suggesting that the widely-traded token could experience a double-digit price dip if a key support level fails to hold. The warning comes from ChartMonkey, a crypto technical analyst who also makes chart-based predictions.
In a post on X, ChartMonkey shared their bearish outlook on BNB, stating, “We are looking closely at BNBUSDT. Price just bounced off support and approached resistance, then fell below $600 quickly. It may make a small upward move, but overall, we anticipate a continued downward trend.”
The analyst’s chart suggests that BNB could potentially sink as low as $535, which is around a 10% dip, if the current bearish momentum persists. However, the path to such a significant dip is not without obstacles.
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Show more +Based on further analysis, the middle band of the Bollinger Bands indicator, currently situated around $589, could serve as a formidable support level for BNB’s price.
For the bears to maintain control and push the token’s value lower, they would need to overcome this band, which could potentially turn into resistance if breached. Conversely, if the price manages to hold above this level, bullish forces could regain traction.
Adding to the complexity of the situation is the Relative Strength Index (RSI), a widely-used momentum indicator. At present, the RSI reads 54, indicating a neutral but slightly bullish trend. A reading below 50 could embolden bears and increase the likelihood of further downward price action.
ChartMonkey’s analysis has sparked a lively discussion within the crypto community, with some traders expressing concern over the potential implications for their BNB holdings, while others remain optimistic about the token’s long-term prospects.
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