Many traders appear bewildered by the steep drop in the Binance Coin. However, the Binance Coin price prediction shows it is nothing unusual. The BNB/USD pair is trading lower this Wednesday, touching off the 558.1 support after the pair fulfilled the Binance Coin price prediction of a drop in fulfilment of the evolving corrective pattern on the daily chart.
The decline of the last three sessions comes as traders who bought Binance Coin to participate in the Porto tokens Launchpad project on the Binance exchange ditch their tokens to look for other opportunities. The 10-day lockup period required for participation in the project led to a demand for Binance Coin, driving the BNB/USDT pair close to its all-time highs.
The BNB/USDT pair is now trading 3.35% lower.
The double top on the daily chart signalled the end of demand for the Binance Coin as the preparatory phase of the PORTO token launchpad ended. Price completed the measured move at 558.1. The intraday bounce by the bulls lacked momentum and was beaten back by the rejection at the 23.6% Fibonacci retracement from the swing move of 28 September to 16 November. This move is expected to extend below 558.1, targeting the 539.7 support (38.2% Fibonacci retracement level/4 November low). An extension of the downside move will see 511.3 coming into the picture (4 September high/31 October low).
On the flip side, a recovery of the uptrend requires a break of the 7 November high at 669.6. This move requires a break of the 605.0 resistance (neckline of the double top) and the 634.3 resistance (12/16 November high). The all-time high of 691.8 (10 May high) would be the next target to the north.
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This post was last modified on Nov 17, 2021, 17:50 GMT 17:50