The cryptocurrency market peaked on January 11, when it reached $1.80 trillion, and shortly after fell by 11% to $1.60 trillion. Meanwhile, the price of Binance Coin has risen since January 12, when it went up from $290 to $320, its highest point today, January 15.
BNB made its previous high on December 28 of $338, after which it started trending down. As it makes a comeback while the rest of the market slumps, can it continue going up above its significant resistance zone at $340?
As seen on the 4-hour chart, the price of BNB made a descending channel from its December 28 high of $338. Its levels were well respected, so now that it started gaining momentum, we saw it surpassing the resistance.
Overall, this is still a lower high compared to previous ones, and we can still say that BNB is in a larger downtrend. But the choppy price action inside the channel suggests it was likely a corrective pattern with further highs ahead.
This descending channel came after a larger price rise of around 45%, measured from its last plateau of $230. But it was formed after it reached significant horizontal resistance and sent back to consolidate.
On the daily chart, we can see the significance behind the $340 zone. It held the price below it from May 2022, and even though some attempts were made for a breakout, this was only short-lived.
This is why, now again, as the interaction was made, the price started declining, but this time, it hasn’t been rejected as hard as the previous ones, leaving room for optimism.
The wave structure also implies that this could be a corrective wave 4 out of the five-wave impulse from October 10, when the price fell to its lowest support zone of $200. The Fibonacci retracement further validates it, as the descending channel ended at 0.382, the optimal point for completing this shallow correction.
This means another higher high would look likely, but it could only be to the resistance zone’s upper bound of $360. Nevertheless, this would be an increase of 15%, measured from the current level, and while the general market sentiment is negative at the moment, BNB looks like it has some gains ahead.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.