The high volatility of the cryptocurrency markets has witnessed the collapse of many major projects. The fall of FTX was a big lesson for investors. One of the largest cryptocurrencies, BNB Coin, did not collapse, but entered a shaken period. So, what is the expectation for the next stage?
At the time of writing, there is bad news that the price of BTC lost $38,000 and a popular whale closed a long position worth 8,000 BTC. This indicates that the narrative of a parabolic rise above the resistance is starting to weaken. In short, the general market outlook for BNB Coin has started to deteriorate.
The price, which has been leaking from the long-term lateral support area since June 2022, has managed to hold above this region ever since. Although the area was lost in July, it was quickly regained.
Last week, the price of BNB Coin rose to $275, but this did not continue, and the upper wick emphasized the dominance of sellers. Of course, the Binance deal and CZ’s resignation also played a role in the recent negative atmosphere.
The weekly RSI suggests that the bulls have the advantage, but this could turn negative within a few days.
Technical readings on the weekly chart support the downtrend. The daily chart is less negative with the fluctuations in the BTC price, but negativity may increase as BTC starts to retreat from resistance. If the BNB Coin price can maintain the support area of $225, it may form a double bottom indicating an uptrend. However, in an environment where the BTC price is exposed to an overselling wave, things look more challenging for BNB Coin. If the sales of BTC deepen and the bears looking to turn the end of the month in their favor enter the game, the $225 support could be lost.
