The woes keep piling up for Binance coin price. BNB is down -10% in Sunday trading and -55% in the last seven days. Can the token recover any time soon?
When it’s good, it’s great, but when it’s bad, its absolutely horrendous. And that pretty much sums up the last five months for the Binance coin price.
BNB is trading at $263.00 and -62% lower than its $704.00 high on April 14th.
Because BNB is the token native to the Binance Exchange, the recent sell-off may have damaged it much more than many other cryptocurrencies.
When the dust settles, each coin or token will be valued on its individual merits and prospects.
The Binance coin price is very much reliant on a broad and healthy interest in the market as a whole.
Much has been made of institutional capital ready to pour into the crypto market. Even if the prices recover from here, It’s likely that the recent volatility will have scared many off for good.
Not to mention the thousands (if not more) of retail traders that would have been wiped out in this move. Losses that will deter future traders from trading crypto.
This could be a serious drag on the exchange volumes. This could prove disastrous for the Binance coin price.
The daily chart shows the bounce from Wednesday’s sell-off has reversed. BNB is back to the lows and testing a supportive trend from the 18th of Feb.
Since the price broke above the line in February, it has never closed below it. Bounces have followed previous tests of the support. However, it remains to be seen if history can repeat this time around.
A failure to holds this supportive trend could result in an extension lower to the $145.00, which started the parabolic rally in early February.
However, if the Binance coin price can remain above the supportive trend line, it may just recover. Although I’m not sure, we will be seeing $704.00 again for a very long time, if at all.
Follow Elliott on Twitter.
