Binance Coin price has fallen 40% from its highest point this year and is at risk of forming a death cross pattern that will lead to more declines.
Summary
- Binance Coin price fell 40% from year high.
- The token formed a bearish pennant chart on the daily chart.
- It is about to form the risky death cross chart pattern.
The Binance Coin (BNB) token has fallen from its all-time high of $1,376 to the current $840. The fall brought its market capitalization to $118 billion, down from an annual high of more than $180 billion.
The token has continued to decline due to the current crypto market crash., which affected Bitcoin and most altcoins.
Technical analysis of Binance Coin price
The daily chart indicates that the price of BNB has been in a pronounced downward trend over the past few weeks. A closer look shows that the token is on the verge of forming a death cross pattern, which happens when the 50-day and 200-day exponential moving averages cross.
In this case, the 50-day EMA is $905 while the 200-day EMA has risen to $880, and there is a high chance that the two will cross.
At the same time, the token is forming a bearish pennant pattern, consisting of a straight vertical line and a symmetrical triangle. It is now forming the triangular pattern whose two lines are about to converge, which will trigger an outage.
Binance Coin price is also slightly below the 61.8% Fibonacci retracement level, which is a risky sign as most bounces normally occur at this level.
BNB price has also moved below the Strong, Pivot and Reverse levels of the Murrey math lines and is now at the Weak, Stop and Reversal point.
Additionally, it remains below the Supertrend indicator and the Ichimoku cloud tool.
Therefore, the token will likely continue to fall as sellers target the next key level at $750, the ultimate support of the Murrey math lines. This target is approximately 10% lower than the current level. Further decline below this level will result in a further decline to $500.
On the other hand, a move above the 50% Fibonacci retracement level at $945 will invalidate the bearish outlook and signal further gains to come, potentially up to the all-time high of $1,380.
