Binance Coin (BNB) price analysis 19 Jan: How far could it drop?
BNB may extend its correction despite its CEO rising to richest crypto billionaire
Binance recently announced that it had completed its 18th coin burn event, where about 1.68m coins were removed from circulation. Unlike previous burns which took into account the token’s usage and revenue generated in the Binance centralised exchange, the “number of tokens removed for this quarter was automatically calculated according to the Auto-Burn formula,” it said.
Continuing its expansion, Binance tied up with Thailand's Gulf Energy Development to set up a crypto exchange to capitalise on strong growth in the digital asset space in Thailand.
The strong growth of Binance itself in the past year has catapulted its Chinese-Canadian CEO, Changpeng Zhao, to the title of richest crypto billionaire, according to Bloomberg. Zhao, with an estimated net worth of $96bn was ranked as the 11th richest person in the world. Zhao took this position even though his personal crypto holdings in bitcoin and binance coin were not added to his net worth.
After the weak performance in the first few days of 2022, will BNB go up in the next few days? Read the BNB price analysis below to find out what the charts suggest.
Binance Coin technical analysis: weekly chart
BNB’s price has been in a corrective phase since early November of last year. Several attempts to start a recovery have been aggressively sold into, suggesting that traders are selling on every minor rise.
The failure of the bulls to pose a strong challenge at the $500 psychological support indicates a pick up in bearish momentum. The relative strength index (RSI) has dipped into the negative zone, indicating that bears have the upper hand.
The BNB/USD pair could drop to the uptrend line, where buyers may attempt to arrest the decline. If the price rebounds off this support and sustains above $510, it will increase the possibility of a move to $560.
Contrary to this assumption, if the price breaks and sustains below the uptrend line, sentiment may sour further. That could accelerate selling, as traders may rush to the exit. The pair could then start a downward journey toward $344.
What is your sentiment on BNB/USD?
Binance Coin technical analysis: daily chart
BNB’s price rebounded off the uptrend line, indicating that bulls are attempting to defend this support. A mild negative is that the bounce fizzled out near the psychological level at $500. This suggests that bears have not given up and are selling on rallies.
If the price breaks below the uptrend line, the pair could drop to the support line of the symmetrical triangle. The bulls are likely to defend this level and attempt to push the price back above the uptrend line.
If they succeed, it will suggest that the pair may extend its stay inside the triangle. The pair will then attempt to rise to the resistance line of the triangle. A break and close above the triangle could signal the resumption of the uptrend.
Conversely, if bears sink the price below the triangle, it will signal that the uncertainty among the bulls and the bears has resolved to the downside. The pair could then start a downward move toward $210.
Binance Coin: Buy or sell at current levels?
Binance Coin’s price analysis suggests that bears are in control. The pair could now drop to the support line of the symmetrical triangle where bulls may mount a strong defence. The buyers will have to push and sustain the price above $510 to signal that the sellers may be losing their grip.
Whatever the outcome might be, your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you are about losing money. This analysis does not constitute investment advice. It is important to make your own analysis before deciding to invest. You should never invest more than you can afford to lose.
