BNB Technical Analysis – February 2022
Binance Coin (BNB) had an incredible year throughout 2021. After reaching an all-time high in May at $690, the price dropped by 70% in less than a month. After that, the price was on a steady increase, where the trendline supported the price from further declining on multiple occasions. BNB had another surge upward in November, where it approached its all-time high, but it was stopped at $670. After that, the price has been declining.
Once again, the price of BNB found support at $400, where the trendline resided, and it was followed by an impulse of 25%. Nonetheless, the price dipped once again due to BNB being in a downtrend. That 7-month trendline was finally broken, which could prove to be a huge blow for BNB hodlers.
In just the last three months, BNB depreciated by around 50%. As BNB continues on this downtrend, the previous support level could now act as resistance to the price of Binance Coin. Nonetheless, BNB recently found support at $336, and now the price is in consolidation, but it could soon have another bearish tendency in the coming days.
The fear and greed index suggests that BNB traders are still fearful, but in less severe ways due to the recent consolidation.
Key Structures
Support
- $335
Resistance
- $415
Indicators
Moving Average
The 20-day moving average of a 1-day chart is above the current price of BNB. This indicates that the downtrend could continue and that the price of BNB could keep declining in the coming weeks.
The 9-EMA is slightly above the price of BNB. It is currently acting as resistance to the price of BNB, and it indicates that the price of BNB could remain bearish in the coming days.
Relative Strength Index
The RSI of a 1-day chart suggests that BNB recently went below 30, suggesting that it became oversold. Hence, the recent price consolidation was sort of expected. The RSI still shows bearish signs, but it also suggests that there is plenty of room for the price of BNB to grow in the coming days.
MACD
The MACD line of a 1-day chart is below the baseline, but it has jumped slightly above the signal line, indicating a shift in momentum. While BNB remains bearish, BNB could increase in the short run due to the lines crossing.
Fibonacci
The Fibonacci retracement levels of a 1-day chart suggest that the price of BNB recently stopped at the 38.2% level. Since the price failed to break that structure, BNB could be heading further down in the coming days.
Price Prediction BNB – February 2022
Based on this technical analysis on Binance Coin (BNB), the price of BNB could decline after failing to go past $407. The price could go below $300 in the coming day. This would be the first time BNB would be the first time BNB would go beneath that level in more than six months. Nonetheless, there are some indications that BNB could still remain above $300 and even attempt to break resistance, other things equal.
Latest News for BNB – Affecting Price
A lot of factors contribute to the recent price movement of Binance Coin. One of them might be the monetary policies of the Federal Reserve. Inflation rose to 7% in 2021, forcing the Federal Reserve to introduce tighter policies, including but not limited to, increasing interest rates. Cryptocurrencies are not the only assets affected by such policies. Nevertheless, investors are currently less likely to buy and hold crypto, including BNB.
Furthermore, the price of BNB is directly correlated with the trading volume of the Binance Exchange. As the demand for trading in Binance has declined in the last few weeks, so has the demand for BNB.
Related: Binance Exchange – Definitive Guide to Using the Popular Crypto Exchange
In addition to that, Binance has been under scrutiny by authorities and regulators, and it got more limited in various countries, including the US. This affected BNB and its price as a result.
On the other hand, Binance is constantly attempting to maintain its community and the trust of millions of users. It still remains in the top 5 rankings based on market cap, and it remains the most used and trusted cryptocurrency exchange in the world.
Binance is now accessible in India, which could noticeably affect the price of BNB for the better.
Crypto is legally recognized in India, with a 30% tax.
— CZ 🔶 Binance (@cz_binance) February 1, 2022
Furthermore, Binance is constantly marketing its services, and that could also be seen in the AFCON Tournament that is currently being held in Africa. While Binance already has a name for itself, such an approach could help Binance reach a wider audience in other countries in the world.
Congratulations to the @Pharaohs for securing their spot in the #AFCON2021 semi-finals! pic.twitter.com/NZWOLadctV
— Binance (@binance) January 31, 2022