Binance Coin's 1.91% Price Drop to $237.20: Key Takeaways for July 25, 2023

Binance Coin (BNB) saw a 1.91% price decline over the past 24 hours, with the price dropping from $241.67 down to $237.20 as of July 25, 2023. Here are some key takeaways from the recent price action and market data:

Lower Highs Show Sellers Still in Control

On the 1-hour chart, BNB put in a lower high at $241.85 compared to the previous high of $243.82. This shows sellers are still in control and applying downward pressure on the price. The next key support level to watch is around $235.

Bearish Crossover on MACD

The MACD indicator on the 4-hour chart saw a bearish crossover with the signal line moving below the MACD. This indicates building downside momentum which could lead to a retest of support around $230.

Volatility Declining Over Past Week

BNB's volatility has been declining over the past week as seen by the narrowing price swings. The 24-hour price range has dropped from $15.82 seven days ago down to $11.62. Lower volatility points to decreased interest from both buyers and sellers.

Key Support Around $230-$235 Area

The $230 to $235 zone marked by the 38.2% Fib retracement level and 20-day moving average is the next key support area to watch. A break below this could open the door to further losses toward $225 and lower. As long as support holds, we could see a bounce back up.

Prediction: Rangebound Action Between $230-$245

My prediction is we will see rangebound price action over the next few days between support around $230 and resistance at $245. Buyers are showing willingness to buy BNB on dips toward $230 while sellers pressure the price lower each time it approaches $245. I expect this rangebound action to continue barring any major fundamental catalysts.

Should You Buy the Dip in Binance Coin?

With BNB down nearly 2% in the past 24 hours, many traders are wondering if now is a good time to buy the dip. Dollar cost averaging can help reduce risk when entering a position. However, I would wait for a confirmed bottoming pattern before going long at current levels.

Key signs of a bottom would be a bullish RSI divergence combined with a break of the short-term downtrend line. This could signal a reversal back up towards the $250-$260 area. Patience is prudent until we see confirmation of an interim bottom forming.

Is Binance Coin's Uptrend in Jeopardy?

In looking at the weekly chart, BNB remains in a structural uptrend dating back to early 2021. However, the recent weakness has raised questions around whether this uptrend is in jeopardy of reversing.

While the long-term trend remains up, a weekly close below $225 would be a warning sign of potential trend reversal. This level marks the 61.8% Fib retracement of the previous upswing.

To repair some technical damage, BNB would need to reclaim the broken support turned resistance around $250. In conclusion, further weakness could put the long-term uptrend at risk of reversing. A move back above $250 would negate the bearish outlook.

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