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BNB could crash 30% if it fails to reclaim this key support level

Since its 2023 peak of nearly $350 in April, Binance Coin (BNB) has taken a notable downward turn, relinquishing a substantial portion of its previous gains. 

In a surprising twist, BNB stands out as one of the few altcoins that have remained in the red since the beginning of the year. This underperformance contrasts sharply with the broader market’s commendable rebound in 2023, following the turmoil of 2022.

Furthermore, it seems that it may not be the end of woes for BNB as the fourth-largest cryptocurrency by market cap faces a risk of a fresh price slump. 

According to crypto market analyst Ali Martinez, the most recent downswing in BNB comes as the coin, alongside many other altcoins, attempts to confirm a bearish flag pattern, the expert said in a tweet on August 15.

This downturn took BNB’s price from more than $305 down to $231 at the start of June, representing a 25% decline.

BNB attempting to confirm a bearish flag pattern. Source: Ali Martinez

Moreover, if the crypto coin fails to reclaim the key support level at $240, another major price slump of 20% to 30% may be in the cards, Martinez noted. 

“If BNB can’t reclaim $240 as support, then we could be looking at a 20% to 30% price correction.”

– Martinez said in the tweet.

BNB price analysis

At the time of publication on August 16, Binance Coin was changing hands at $233.77, down 2.4% in the past 24 hours. 

BNB 1-day price chart. Source: Finbold

The crypto asset lost more than 4.5% in value on the weekly chart, and over 6.2% on the month. 

Year-to-date, BNB is one of the few major altcoins with a negative price performance, tumbling 4.1% during that period. 

If the coin fails to recover the $240 support – which currently acts as resistance – and Martinez’s 20%-30% correction forecast comes to fruition, it could take its price to as low as $187-$163.

On the upside, regaining the $240 price level could pave the way for BNB to attack subsequent resistance pivot points at $245 and $250.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

The post BNB could crash 30% if it fails to reclaim this key support level appeared first on Finbold.

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