BNB Coin Price Breaks Down After Positive News From Binance

binance coin (BNB) price broke a descending resistance line but is yet to retest an important horizontal resistance level. Whether it is successful in doing so may determine the direction of the future trend.

Despite the ongoing crypto bear market, Binance had a relatively successful 2022, all things Considered, First, Binance CEO Changpeng Zhao catalyzed the downfall of rival firm FTX by tweeting that it would be selling all of its FTT tokens.

This announcement triggered the bank run which was the first step in the downfall of FTX. In addition, Binance also Cristiano Ronaldo NFT Launched Collected and created a $1 billion Industry Recovery Fund to invest in struggling crypto firms.

In recent Binance news, the exchange has allegedly receiving Gopax is one of the largest exchanges in South Korea. BNB, the native token of the BNB chain, surged as a result of the news.

Binance Coin Price at Make-or-Break Level

bnb worth There was a drop below a descending resistance line since reaching a high of $398.30 on 8 November. The downside movement reached a low of $220 on 17 December.

Later, BNB price bounced back and formed a long lower wick (green icon), validating the $222 support area in the process. The digital asset broke out of a descending resistance line on January 5, 2022, due for an upcoming upward move.

Despite the breakout, the price of Binance Coin is yet to rise above the $261 resistance area. Whether it does or is rejected may determine the direction of the future trend. A successful breakout could propel the bullish pump towards $318, while a rejection could lead to a decline and a retest of the $222 area.

Consequently, the reaction of the $261 area will be crucial for future Binance Coin price analysis.

Binance Coin (BNB) Price Analysis
BNB/USDT Daily Chart. source: trading view

Wave count shows full improvement

While technical analysis from the daily chart gives an uncertain outlook, the six-hour chart is more bullish. The first reason for this is the possibility of a complete ABC reform from November 2021. Waves A:C have a 1:1 ratio, which is common in this type of rectifying structures.

Furthermore, the upcoming overlap (red line) shows that the BNB coin downward movement is not impulsive.

The second reason was the momentum above the $252 minor resistance area, which has now become a support. The area can be tested again in the next 24 hours. This coincides with an ascending support line since December 18th.

Consequently, if the price fails to close below this support area, Binance Coin price analysis can be considered bullish.

Binance Coin (BNB) Price Analysis
BNB/USDT six-hour chart. source: trading view

To conclude, the direction of Binance Coin price action will be determined by whether the price breaks above $261 or breaks below $252. Based on the current price action, the chances of a breakout seem a bit high.

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