BNB hits the support of $250! Will it correct further?

Binance has been at the forefront of blockchain and cryptocurrency transformation since its emergence in the top cryptocurrencies. Leaving aside the prospects and fundamentals of this crypto, we can find a growing crypto and payments market even without the leading players. 

As BNB is involved in payments, crypto trading, smart contract, and DeFi, the outlook of this token have remained in the limelight and is often used as an indicator of market sentiment. BNB currently holds a high rank of 5th spot with a market capitalization of USD 42 billion.

BNB Price Analysis 

BNB has been reeling under profit-booking pressure after the positive retracement in November. December has been strongly negative for the token, taking it back to the previous lows without any negative clouds on the market. The outlook of the BNB coin has taken a massive hit of its inability to gather buying rallies despite trading at lower valuations.

BNB chart

The sudden rejection at $360 came as a knee-jerk reaction to widespread crypto fear, but the current dynamics around the market had no role in the decline of BNB from the peaks of $317 to $263. With support readily having contributed a major role in improving the price outlook of BNB, we can expect a positive turnaround, but the probability of strong retracement remains dim. 

Looking at the transaction volumes and behavior near the price band shows a dump of BNB tokens in the open market in the last couple of days. The impending impact of this movement on BNB remains highly negative as per the BNB predictions

Regarding its price movement from $317 to $263, RSI has tanked from 60 to 33, a huge negative indicator. Looking at MACD indicators, the negative action has been confirmed or has begun since the beginning of December 2022. 

Buyers should ideally wait for a positive breakout to make a fresh entry, while that already holding BNB in their portfolio should add more based on their risk-taking ability. The upside for BNB is uncapped, but there sure could be limitations to the downfall.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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