Binance Coin (BNB) is heading towards a long-term support level near £227, although no obvious positive reversal signs have emerged.
Since hitting an all-time high of £561 on May 10, 2021, BNB has been declining. It reached a lower high of £543 in November 2021, followed by resumption of downward movement.
In January, the price dropped to a long-term ascending support line. This triggered a bounce, but it was only temporary. The coin’s price broke down from the support line on May 5 and has since dropped to a low of £234.
The nearest support area, generated by the May 2021 lows, is near £219.
In the weekly time frame, technical indicators are negative. The RSI has now dipped below 50, which is the key reason for this. The entire upward trend towards the all-time high was preceded by the weekly RSI crossing over 50.
Furthermore, the MACD is declining and approaching negative territory.
The main support area of £227 is also the support level for the 0.618 Fib retracement. The 0.786 Fib retracement support level is at £138 if it fails.
The downward movement towards the aforementioned support region is supported by technical indicators in the daily time frame.
The key cause for this is the falling MACD and RSI, as well as the latter’s breakdown from its ascending trend line.
The RSI is also considerably below 50, and the MACD is bearish.
Since May 6, BNB has been following a descending resistance line on the two-hour chart. Because of the bearish readings on the daily time frame, the most likely scenario is for this line to be rejected, resulting in the downward movement to continue.
BNB had a large price gain at the start of 2021, putting it on the radar of enterprise investors.