Key Takeaways
BNB is currently at a crucial juncture, approaching a major resistance zone near $794 while forming a wedge-like structure.
Elliott Wave analysis suggests completing a primary impulsive wave, with potential corrective movement before a further rally. Key Fibonacci levels will dictate the next move.
On the daily chart, BNB has completed an extensive five-wave Elliott pattern, with the price reaching a new all-time high of $794 on Dec. 4.
The broader uptrend remains intact. Still, momentum appears to be weakening, as indicated by the Relative Strength Index (RSI), which shows divergence from price action.
The formation of a rising wedge further strengthens the case for a correction, as we saw a 19% decline to a low of $642 today.
The rejection from $794 brought the price below its previous all-time, which is an early sign of weakness. It now puts pressure on the ascending support from the channel anchored at the wave 4 low of $408.
Should the correction deepen, a decline could extend toward the 0.618 retracement at $602 or even to $485 if the breakout momentum strengthens.
This area aligns with previous accumulation zones, making it a likely landing point for any significant correction before another bullish wave emerges.
RSI readings are cooling down from overbought conditions, confirming the likelihood of a near-term pullback before BNB resumes its primary trend.
The lower time frame provides more detailed insights into BNB’s likely trajectory. Currently, the price is at risk of breaking below the ascending channel support, which aligns with the 0.5 Fibonacci level at $638.
A confirmed breakdown would validate a Wave Y correction targeting the 1.0 extension at $485, with an extended target near the 1.272 level at $402.
However, a bullish scenario remains if the price is above $638 and the 0.382 level is reclaimed at $674.
This would indicate that Wave 4 has been completed at a higher level, setting the stage for Wave 5 toward fresh highs.
The projected Wave 5 rally would first challenge the $794 resistance. BNB could aim for $900 if broken with strong volume, aligning with a Fibonacci extension target.
A failure to hold above key retracement levels would invalidate this bullish outlook, with deeper corrective targets at $402 and $296.