Binance: Should Traders Short BNB at $300? Why is it moving bearish
Disclaimer: The information presented does not constitute financial, investment, business or other advice and is the opinion of the writer only.
Binance Coin [BNB] is ranked 7th on CoinMarketCap and is the largest exchange token by market capitalization. It has seen huge gains since the beginning of 2021. Last year's bear market saw the coin drop from $650 in November 2021 to $200 at the end of June.
Binance has also gone from strength to strength and most analysts expect this trend to continue. Years into the future, BNB could be one of the giants of the ecosystem. However, a month later, the picture is not so rosy.
BNB - 1-Day Chart
Support and resistance areas are marked in cyan and red, respectively. In mid-May and early August, the $336 mark unequivocally rejected bullish attempts. In addition, the $300 level is also very important psychologically. So the area around him could be a major battleground in the order books, as bulls and bears vie for control.
At the time of publication, bears have taken over this territory. Earlier this month, an attempt to scale the $300 high was delayed and a retest of the $260 region was made. The market structure is also down for Binance Coin since August when the $300 mark became resistance.
This bias will continue in the coming weeks. Sell when BNB hits $300 and look for buying opportunities around $260.
BNB- 12-hour chart
The higher time frame market structure has caused Binance Coin to drop in price. This means that, on the 12-hour chart, a trader can look for short selling opportunities. A bearish block has formed near the $300 mark, which is again marked in red.
The consolidation of an important level along with an H12 block suggests a high probability of short selling in the coming days. The Relative Strength Index (RSI) is at 55, which is a slight uptrend. This reacts with an increase to $260.
The Awesome Oscillator (AO) has not yet crossed the zero mark and is showing slight downside momentum. The Accumulation/Distribution (A/D) line shows an uptrend since June, but has remained flat for the past two weeks.
The price action strongly hints at a short selling opportunity at the $300 mark. A move beyond this level will change the long-term structure to the upside. However, with Bitcoin below the $19,600 resistance, caution is needed next week.
A move above $20k could also help Binance Coin break its resistance. Such a scenario would invalidate the discount ideas presented in this article. Until then, the downside targets will be $260 and $240 after a retest of the $300 zone.
Sep 25, 2022