The recovery in the Binance coin price has fallen short at a key level. Momentum has now turned lower, and BNB could have further to fall.
For the second weekend in a row, cryptocurrency markets are under pressure. The bullish momentum coming into the end of last week turned lower on Friday and has continued over the last two days.
BNB is trading at $304.00, having pulled back from the resistance of a descending trend at $385.00. The bounce from last week’s $211.00 low failed to gain enough traction to clear the important threshold.
BNB has now reached the target price I predicted on Twitter yesterday. The big question now is, will the Binance coin price recover from here or continue on a downward path to last week’s low?
Binance Coin Price Outlook
The 4-hour chart illustrates the descending trend line from the 12th of April $685.00 high.
The +90% bounce from $211.00 reversed precisely on the line at $385.00. A second attempt to rally yesterday again fell just short of the resistance, and BNB reversed lower.
Today, the trend line is, of course, lower at $340.00. This should be considered an important level. Therefore, should the price trade above $340.00, I would expect an extension higher towards $385.00.
After retreating from the trend, the Binance coin price has found some support around the $300.00 mark.
Aside from being a psychological level, the 0.50% retracement level from the $211.00 low is at $299.30.
The 0.618% Fibo is slightly lower at $278.90. This band of resistance between $278.90 and $300.00 is important. This is likely to be an area of interest to buyers.
Therefore, if the price fails to stabilise here, it may well signal a return to last weeks low.
Whether the price breaks resistance at $345.00 or support at $278.90 will depend a lot on how Bitcoin and Ethereum trade over the course of today.
For now, the price momentum suggests lower. However, as we know, with crypto, that can change very quickly.
BNB 4-Hour Price Chart
Follow Elliott on Twitter.