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BNB Price Down 19% From Peak, Eyes Support in Ascending Channel

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Major resistance test near $794 with potential rejection
  • Wave 4 correction could extend toward $485 support
  • Bullish continuation if price holds above the $638 level

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.

BNB Price Analysis

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.

BNB price analysis
BNBUSD decline after new ATH | Credit: Nikola Lazic/TradingView 

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.

BNB Price Prediction

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.

BNB price prediction
BNBUSD breakout or a bounce | Credit: Nikola Lazic/TradingView 

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.

Key Levels to Watch

  • Immediate Resistance: $718 (0.236 Fibonacci retracement)
  • Key Resistance: $794 (multi-timeframe supply zone)
  • Immediate Support: $674 (0.382 Fibonacci retracement)
  • Critical Support: $485 (1.0 Fibonacci extension)
  • Short-Term Target for Wave 5: Above $900 if uptrend resumes
  • Invalidation Zone: Below $402, confirming a deeper bear cycle.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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