Short Binance Coin [BNB] at $300? Here is why a bearish move is likely

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Dis­claimer: The infor­ma­tion pre­sent­ed does not con­sti­tute finan­cial, invest­ment, trad­ing, or oth­er types of advice and is sole­ly the writer’s opinion.

Binance Coin [BNB] was ranked 7th on Coin­Mar­ket­Cap and was the largest exchange token by mar­ket cap­i­tal­iza­tion. It wit­nessed enor­mous gains since ear­ly 2021. The bear mar­ket of the past year saw the coin fall from $650 in Novem­ber 2021 to $200 in late June.

Binance has also been going strong, and most ana­lysts expect this trend to con­tin­ue. Years into the future, BNB could be one of the giants of the ecosys­tem. Yet, in the next month, the pic­ture was not quite as rosy.

BNB- 1‑Day Chart

Short Binance Coin at $300? Here is how BNB could move going forward

Source: BNB/USDT on TradingView

The sup­port and resis­tance zones were marked in cyan and red respec­tive­ly. In mid-May and ear­ly August, the $336 mark deci­sive­ly rebuffed bull­ish efforts. More­over, the $300 lev­el was a psy­cho­log­i­cal­ly impor­tant one. Hence, the region around it could be a mas­sive bat­tle­field on the order books as bulls and bears fight for control.

At press time, the bears held this ter­ri­to­ry. Ear­li­er this month, an attempt to scale the $300 heights was pushed back, and a retest of the $260 zone was effect­ed. The mar­ket struc­ture was also bear­ish for Binance Coin since August, when the $300 mark was flipped to resistance.

This bias would remain in the weeks to come. Sell when BNB reached $300, and look for buy­ing oppor­tu­ni­ties around $260.

BNB- 12-Hour Chart

Short Binance Coin at $300? Here is how BNB could move going forward

Source: BNB/USDT on TradingView

The high­er time­frame mar­ket struc­ture was bear­ish for Binance Coin. This meant that, on the 12-hour chart, a trad­er can look for short­ing oppor­tu­ni­ties. A bear­ish order block formed near the $300 mark, once again high­light­ed in red.

The con­flu­ence of a key lev­el along­side a H12 order block sug­gest­ed that high prob­a­bil­i­ty short posi­tions could present them­selves in the days to come. The Rel­a­tive Strength Index (RSI) was at 55, which was weak­ly bull­ish. This was in response to the bounce from $260.

The Awe­some Oscil­la­tor (AO) was not yet above the zero mark, and showed slight bear­ish momen­tum. The Accumulation/Distribution (A/D) line trend­ed upward since June but was flat in the past two weeks.

Conclusion

The price action strong­ly hint­ed at a short­ing oppor­tu­ni­ty at the $300 mark. A move past this lev­el would flip the long-term struc­ture to bull­ish. Yet, with Bit­coin below the $19.6k resis­tance, cau­tion was war­rant­ed over the next week.

A move above $20k could help Binance Coin break its resis­tance as well. Such a sce­nario would inval­i­date the bear­ish ideas pre­sent­ed in this arti­cle. Until then, down­side tar­gets would be $260 and $240 after a retest of the $300 region.

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