Binance Coin inches closer to yearly support despite sideways momentum
June has started quite positively for most coins including BNB. The coin however appears to have slowed down. After a strong relief rally, BNB was firmly rejected at the $330 resistance. Ever since the coin has fallen quite substantially. Here are some of the highlights:
BNB has fallen below $300 despite a decisive bull run over the past week
The coin could fall back to its $260 yearly support before any leg up
But a close above $300 will invalidate this bearish thesis
Data Source: TradingView
BNB price prediction and analysis
The relief rally that we have seen in crypto over the last 7 days has been quite refreshing. However, BNB appears to have lost a lot of momentum after failing to surge past the $330 resistance. There could however be more downside. After trading sideways for the best part of the day, BNB does not appear to have any bullish momentum left.
Instead, the coin will likely slip further and bottom around its $260 support. This will represent a drop of around 15%. Now, even though a 15% decline is big, it’s not a serious sell-off. If anything, we expect BNB to hold $260 strongly in the coming weeks.
However, there is still a possibility for more gains if the token can push above $300. After all, the coin is just $10 away from this price. But despite this, due to a lack of enough bullish momentum, we don’t see BNB jumping above $300 in the coming days.
How to trade BNB for now
The downside risk for BNB is capped at $260. Yes, the coin will drop, but bears don’t have enough initiative to breach the strong $260 support. Also, broader sentiment in crypto is getting better.
So, a good play would be to wait for the coin to hit $260 before buying. Also, if BNB surges above $300, you can still buy and exit at $330.