Binance Coin [BNB] has been one of the best performing crypto-assets in the latest bull run. Its YTD gains neared 200% after it climbed its previous price all-time high. However, BNB faced minor retracement, as the cryptocurrency market cap fell roughly $100 billion. The mounting bearish pressure was felt by several altcoins which led BNB to record a weekly loss of 8.71%.
Over the past 24-hours, BNB was down by 1.70% which drove its price to $37.83. At the time of writing, the crypto-asset registered a market cap of $5.37 billion and a 24-hour trading volume of $572 million.
Despite the sharp correction, will a short-term top materialize?
Binance Coin [BNB] Daily Chart:
Binance Coin [BNB] had failed to build upon the recovery despite buying the dip. The BNB price candles strictly followed an ascending channel pattern oscillating between the two upward sloping trendlines. As predicted, the outcome was a bearish breakout following the completion of the pattern as the crypto-asset took a dip right after establishing a fresh all-time high.
Looking closer at the above chart, it can be noted that the $41.35-$44.02 region served as strong resistance as BNB saw a pullback. This correction back closer to its support level further signaled a good opportunity for the market participants to enter a long position.
The technicals for Binance Coin, however, appeared to be bearish. The MACD, for instance, generated a weak sell signal as it formed a bearish crossover under zero. A move by the MACD into the bearish territory can confirm that BNB was heading to make more losses in the coming days.
The RSI witnessed a steep fall, in tandem with the price, after climbing to the overbought zone and was found to be a little below the 50-median line suggesting a declining sentiment of buying pressure among investors in the coin market. This evidenced that a local top has formed at the recently touched ATH-level.
If this is indeed the case, then BNB’s price could continue to face resistances by $41.35 and $44.02 respectively in the near-term. In absence of bullish momentum, the crypto-asset could break its nearest support of $36.01 to target other downsides at $32.12 and $27.27 respectively.