The price of the popular altcoin Binance Coin (BNB) seems to be preparing for another drop. Analyst Tony M. has identified critical buy-sell levels for the BNB price. We convey the details and analyst opinions…
Popular altcoin Binance Coin (BNB) marks a fresh drop
As we reported on cryptokoin.com, Binance Coin (BNB) price has been trading in tight territory throughout September. The bulls blocked both the 8-day and 21-day simple moving averages. This, in turn, can persuade investors who have stepped aside to enter the market. However, the Relative Strength Index paints a different picture of what’s going on. Binance Coin is currently trading at $287. The Relative Strength Index shows the downtrend broken along the exact line on the chart that will form the market bottom. BNB price has passed through an ascending parallel channel that the bulls are currently retesting. Finally, the Volume Profile is still less than the previous uptrend. This was far less trade than the descending rally that brought BNB into the current range.
BNB will need to rally impulsively to demonstrate the techniques needed to invalidate the bearish thesis. (Probably near the $350 order block). Therefore, Binance Coin needs to drop more than it looks in the short term. Therefore, investors should be careful. A Fibonacci Projection level using previous swing highs in August and swing lows in September suggests the bears could trigger a seller’s rally towards $220 if the techniques are correct.
BNB may disappoint investors in Q4
If BNB price drops to $220, investors may want to consider the average dollar cost of BNB over the long term. Because on-chain analysis still shows the decentralized exchange altcoin project to be locked down significantly. Currently, BNB has 21 million tokens in circulation, a last witnessed in 2020 when BNB was trading at $14 just before its infamous 5x rally by 2021. supply. Binance Coin’s performance in September was not remarkable.
According to BNBburn, the number of tokens burned in the third quarter surpassed the entire record for the second quarter. BNB tokens burned in Q3 were 2,040,503.56 BNB compared to 1,976,739.87 BNB in Q2. Interestingly, the improvements occurred despite a lower average transaction price recorded in Q3. As expected, this led to a significant difference in the value of BNB burned. The value of the 2nd quarter was $626.356,129,623 and the value of the 3rd quarter was $562,592,435.15.
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