BNB Recovery Roadmap
Updated
• It is not the first time it seems like BNB is up against the ropes. In November/December 2022 BNB faced some serious headwinds following rumors about Binance being insolvent. The affiliation between Binance and BNB coin caused a 30% drop in BNB’s price.
• Experience shows that these FUD cycles are a great buying opportunity if you can take the pressure. Then and now, we do not know where the bottom is. However, we can use past experience as a guide to future recovery.
• On December 17th, price was at 220 USD and the RSI was at 24.83 (oversold level). Today, BNB is at the same price and the daily RSI is at 17.6, extremely oversold. While I cannot say with certainty that a bullish reversal is imminent, I think it probable.
BNB Recovery Roadmap:
• I took the fractal from BNB’s last recovery and coupled it with current EMAs, and daily support and resistance and the picture makes sense to me. I hope it does to you as well.
• Step 0: Hold Support. This is a precondition. BNB must hold the 220$ level to allow price to recover. Further price drops will make BNB’s recovery much harder and slower.
• Step 1: Above 4H 21 EMA. BNB must get above the 4H 20 EMA and hold the level to reduce immediate bearish pressure. If BNB does that, we can begin to feel optimistic about a possible trend change.
• Step 2: Above the 4H 50 EMA. If BNB can get above at the 4H 50 EMA and consolidate that level for a short time, like it did in the past (blue dots), I think it qualifies as a Change of Character and sign of bullish reversal.
• Step 3: Above the 20D EMA. If BNB can get above the 20D EMA and flip the 270 – 280 USD level to support, I will be confident that BNB is on the mend.
• Step 4: Above daily resistance. The 308$ level held BNB back throughout the month of May and the beginning of June (orange circle). If this level flips to support, we can aim for the range high.
• Experience shows that these FUD cycles are a great buying opportunity if you can take the pressure. Then and now, we do not know where the bottom is. However, we can use past experience as a guide to future recovery.
• On December 17th, price was at 220 USD and the RSI was at 24.83 (oversold level). Today, BNB is at the same price and the daily RSI is at 17.6, extremely oversold. While I cannot say with certainty that a bullish reversal is imminent, I think it probable.
BNB Recovery Roadmap:
• I took the fractal from BNB’s last recovery and coupled it with current EMAs, and daily support and resistance and the picture makes sense to me. I hope it does to you as well.
• Step 0: Hold Support. This is a precondition. BNB must hold the 220$ level to allow price to recover. Further price drops will make BNB’s recovery much harder and slower.
• Step 1: Above 4H 21 EMA. BNB must get above the 4H 20 EMA and hold the level to reduce immediate bearish pressure. If BNB does that, we can begin to feel optimistic about a possible trend change.
• Step 2: Above the 4H 50 EMA. If BNB can get above at the 4H 50 EMA and consolidate that level for a short time, like it did in the past (blue dots), I think it qualifies as a Change of Character and sign of bullish reversal.
• Step 3: Above the 20D EMA. If BNB can get above the 20D EMA and flip the 270 – 280 USD level to support, I will be confident that BNB is on the mend.
• Step 4: Above daily resistance. The 308$ level held BNB back throughout the month of May and the beginning of June (orange circle). If this level flips to support, we can aim for the range high.
Trade active
Step 1 achieved. Hopefully we'll get good CPI numbers today.Note
On the whole, BNB's outlook is positive. BNB is consolidating at the 240 USD level.
The 4H 21& 50 EMAs act as resistance.
If BNB manages to push up above the EMAs, I will become more optimistic.
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