BNB Coin Slips, but Could It Finally Break Out of Consolidation?The BNB price has been in a consolidation phase between $288 and $320 for the last 2 weeks. It attempted to break above this channel on Jan. 15 but was unable to close a 4-hour candle above this threshold. Since then, the altcoin has been in a steady descent.
BINANCE:BNBUSDT seems to be attempting another challenge at the upper boundary of the aforementioned sideways channel. However, technicals on BNB’s 4-hour chart suggest that the crypto does not have the momentum needed to surpass this mark.
The Moving Average Convergence Divergence (MACD) indicator is flagging bearish on the 4-hour chart. With the MACD line positioned below the MACD Signal line, it appears the BNB price is still in a bearish short-term cycle. In addition to this, the slope of the MACD Histogram is negative. This may be a sign that BNB’s negative trend is growing stronger.
Despite this, there is still hope that the altcoin will begin to rise soon. The Relative Strength Index (RSI) indicator was on the verge of triggering a major bullish technical flag on the 4-hour chart. Currently, the RSI line is attempting to cross above its Simple Moving Average (SMA) line. Should the prior break above the latter, it could be the early signs of a bullish trend reversal for the BNB price.
As a result, the BNB price may look to overcome the $320 obstacle. A daily close above this level could then give it the foundation needed to continue rising to $340 in the following couple of days. However, a break below the middle level of the current price channel, which is situated at around $303, may invalidate this bullish thesis. In this alternative scenario, the BNB price could be at risk of falling below $288 before potentially plummeting to $257.5 in the following few days.
