Binance Coin (BNB) experienced a dip below $600 during the recent market crash, resulting in the breaking of a significant support line. However, it managed to bounce back from $550, showing a 4.10% recovery within just 48 hours. Currently priced at $532, BNB is facing bearish pressure, but there are indications of a potential turnaround due to strong underlying demand and the presence of a double-bottom pattern.
The recent market crash had a negative impact on the price of Binance Coin (BNB), causing it to lose ground above the crucial $600 level and break below a critical support trendline. As a result, the dynamics in the Binance price chart have shifted towards the bearish side, raising concerns about a potential correction. However, these shifting dynamics are being challenged by a short-term reversal and the presence of underlying demand, which is seeking a recovery.
Despite the recent downfall, BNB has demonstrated a quick reversal from the psychological mark of $550, successfully overcoming supply pressure and teasing a potential comeback in the near future. This reversal rally comes after the BNB price tested the 200-day Exponential Moving Average (EMA) with a looming death cross. Currently, the Binance token price is trading at $532, reflecting a bearish outlook for the altcoin with a 5.6% intraday drop.
Although the buyers have been unable to drive the ascending trendline to completion, the BNB token price is showing signs of a comeback fueled by underlying demand and the presence of a double-bottom reversal pattern. Additionally, the overall market recovery is contributing to the momentum of the altcoin’s recovery.
If the BNB price manages to break above the $635 level, it has the potential to reach $763, as indicated by the trend-based Fibonacci level. However, investors should exercise caution as a correction in the overall market could lead to a plunge in the altcoin’s price, potentially pushing it down to the $500 level.