While the broader cryptocurrency market has been witnessing a significant rally, Binance Coin (BNB) has demonstrated a comparatively modest 20% increase over the past three weeks. As of the latest data, BNB is trading at $246, representing one of the more subdued performances in the sector.
The Relative Strength Index (RSI) for BNB is approaching an overbought condition, with a value close to 70.0. This, combined with a lack of strong bullish sentiment towards BNB, raises the possibility of an impending correction. Analysts suggest that this correction could potentially drive BNB’s price down to $231 before rebounding or potentially testing the new year-to-date lows around $219.
However, despite this bearish outlook, there is also the potential for BNB to experience upward movement should the broader bullish market trend continue. In such a scenario, BNB could gradually work its way towards the next notable resistance level, which is the Fair Value Gap (FVG) between $264 and $272. If this level is successfully established as support, it could defy the bearish expectations.
Should BNB sustain above this support level, the cryptocurrency might set its sights on the second FVG between $286 and $302. It’s essential to note that these projections are contingent on the prevailing market trends and investor sentiment, both of which can be highly unpredictable in the volatile cryptocurrency space.
