- Binance Coin price must reclaim $414 as support in order for the bulls to target higher levels.
- BNB may be confronted with a stiff hurdle at the 50% retracement level at $504.
- However, if Binance Coin fails to slice above $414, the exchange token may drop lower toward the 200 three-day SMA.
Binance Coin price slipped below a significant line of defense on January 21 and is now at risk of declining further. BNB must climb toward $414 and reclaim the level as support in order to avoid further losses.
Binance Coin bulls renew optimism
Binance Coin price sliced below the lower boundary of the ascending parallel channel on January 21 on the 3-day chart, putting the bullish forecast at risk.
In order for BNB to steer clear of further decline, the bulls must tag the downside trend line of the prevailing chart pattern at $414, coinciding with 23.6% Fibonacci retracement level.
The Arms Index (TRIN) which gauges overall market sentiment suggests there is an increase in buyers in the market.
If buying pressure continues to increase, Binance Coin will confront the next level of resistance at $464, where the 100 three-day Simple Moving Average (SMA) and the 38.2% Fibonacci retracement level intersect.
Bigger aspirations will target the 50% retracement level at $504, where the 21 three-day SMA and 50 three-day SMA also sit. However, this line of resistance may act as a stiff hurdle for Binance Coin. Only a decisive break above this level would put higher levels on the radar.
BNB/USDT 3-day chart
If Binance Coin breaks above the aforementioned obstacle, BNB could tag the 78.6% Fibonacci retracement level at $602, coinciding with the middle boundary of the governing technical pattern.
However, if selling pressure increases, Binance Coin price may slide toward the September 25 low at $320, then toward the support line given by the Momentum Reversal Indicator (MRI) at $299.
An additional spike in sell orders may push Binance Coin price lower toward 200 three-day SMA at $262.