Binance Coin price consolidates near $550 before next leg up

BNB has been trading lower since rallying to an all-time high of $639 on 12 April

Binance Coin (BNB) is trading around $551 as of writing, nearly 5% off its 24-hour opening price. The cryptocurrency is however back into the third spot as the largest cryptocurrency by market cap, replacing XRP.

While BNB is down on the day, it appears sellers don’t have the conviction for a swift plunge. This could aid bulls’ plans and see BNB/USD trade higher.

BNB price daily chart outlook

The daily chart suggests a lack of price movement over the past 24 hours as BNB hovers around $550. Another Doji candlestick is likely if the price fails to break in either direction in the next several hours. In this scenario, a Double Doji formation may appear, suggesting a strong breakout in the next few days.

The RSI and the MACD indicators suggest bulls remain in control despite the selling pressure. If the price turns higher, bulls could eye a new rally towards $600 and recent highs near $640.

On the other hand, if the indecision being witnessed resolves downwards, initial support lies near the 38.2% Fibonacci retracement level at $480. Further losses could push BNB lower, although bulls will attempt to halt the damage around the 50% Fib level ($431). The area provides robust support as it also provides for the 20-day exponential moving average at $430.

BNB price 4-hour chart outlook

The 4-hour chart reinforces the picture that BNB is in correction mode after the recent gains. The cryptocurrency is trading within a contracting triangle pattern, with yesterday’s Doji formation resulting in further intraday losses in today’s early trading sessions.

Bulls have managed to push prices from $522 to highs of $556 over the past 24 hours. Despite increasing pressure, the BNB/USD pair remains above the 20-day EMA ($545).

If fresh demand hits the market, prices could bounce towards the descending trendline and look to breach the 50% Fib level ($581).  Another leg up will confirm the resumption of the uptrend, with bulls likely to aim for $640 and then $673.

On the contrary, a breakdown to $520 risks a potential 10% drop to lows of $465.  From here, extended selling will sink BNB/USD below $429 and likely drag the price towards $406.