Introduction
A popular trader and analyst recently expressed a bearish outlook for Binance Coin (BNB), the native token of the Binance ecosystem. According to the analyst, there are concerns that BNB could experience a significant drop to the range of $40-45.
Short-Term Bullish Flag
Examining the shorter-term perspective, the daily chart for BNB indicates the presence of a notable bullish flag that is on the brink of being triggered. This observation adds an interesting dimension to the overall market analysis.
Analyst’s Insight
The cryptocurrency trader and analyst, known by the username il Capo Of Crypto, shared his bearish stance on BNB through a recent post. In the post, he pointed out various indicators, including “PA, heatmaps, IO, and fundings,” which bear similarities to the patterns observed in other cryptocurrencies like FTT or LUNA before a market downturn.
“I have been posting updates on Telegram all year. Every addition to the short position, the reasons why… PA, heatmaps, OI, and fundings very similar to $FTT or $LUNA before the crash. The main move hasn’t happened yet. Current avg. entry = $301”
Il Capo Of Crypto has been consistently adding to his short position as part of a swing strategy with low leverage, following a target set last year for BNB in the range of $40-45.
Current Market Status
As per data from CoinMarketCap, BNB was trading above the analyst’s target at $233.68, with a 24-hour gain of 2.54%. The recent uptick also contributed to BNB’s weekly performance, escaping the red zone to reach +1.28%.
BNB successfully surpassed the strong $230 resistance level in the past day of trading. A daily candle close above this level could lay the foundation for a potential rise to the next major barrier at $240 in the coming week.
Conversely, a daily candle close below $230 might result in BNB retracing to the immediate support level, potentially reaching as low as $220 in the short term.
Technical Analysis
Traders and investors should take note of a significant bullish technical flag on the horizon. At present, the Moving Average Convergence Divergence (MACD) line is poised to cross above the MACD Signal line, suggesting a potential continuation of BNB’s positive trend.
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