BNB Price Drop – Temporary Blip or Sign of Things to Come?

BNB price dropped significantly last week, creating a large candlestick.

Despite the decline, BNB's price has moved above a minor horizontal support area. Will it be enough to stop the bleeding?

BNB could not sustain the increase

Technical analysis of the weekly time frame shows that BNB price peaked at the June 2022 long-term horizontal support area (green icon) and has been trading above the area since then.

The price initially fell below the area in July 2023 (green circle) but soon regained the area. Since then, the price of BNB has increased.

Last week, BNB price surged to $275. However, the price could not continue its growth, forming a bear candle with a long upper wick.

The decline comes after Binance CEO Changpeng Zhao resigned after being fined more than $4 billion by the United States Department of Justice.

Market traders use Relative Strength Index (RSI) as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell the asset.

A reading above 50 and an upward trend indicates that bulls still have an advantage, while readings below 50 indicate the opposite. The weekly RSI was rejected at 50, and at the same time, the price dropped from $275.

Impact of Binance Wallet

Binance introduced the Binance Web3 Wallet on November 11, a secure, self-managed cryptocurrency wallet seamlessly integrated with the Binance app.

This wallet comes with a number of innovative features, a notable highlight being the ability to facilitate cross-chain token exchanges via the Binance Bridge.

To help users navigate these tasks, the Binance team has shared a tutorial on social media platform X.

In an interview with BeinCrypto, Crypto Merchant founder Mark Venables highlighted Binance's Web3 Wallet as a revolution in self-sustainability in the crypto market.

He pointed out that it has the potential to enhance security, financial autonomy, encourage interaction, encourage innovation and provide educational opportunities. These features empower users by giving them more control over their digital assets while promoting blockchain technology.

Expanding on the topic of self-preservation, Venables takes a closer look at how Binance's Web3 wallet strikes a balance between user-friendly design and individual responsibility. He emphasized the wallet's user-centric approach and measures to ensure users take full responsibility for their digital assets.

With a secure interface, key management, education and support, Binance achieves a unified mix of usability and user empowerment.

Venables explored the technological innovation in Binance's Web3 Wallet, specifically Multi-Party Computing (MPC). He explained the MPC as follows:

MPC, or Multi-Party Computation, is a cryptographic technique that allows multiple parties to compute a task together without revealing their own resources. In the context of self-sustaining wallets like Binance's Web3 Wallet, MPC will change the landscape of cryptocurrency storage by introducing a new level of security and accessibility.

In the context of self-sustaining wallets, MPC has revolutionized cryptocurrency storage by introducing higher security and accessibility. Venables highlighted its ability to distribute key management responsibilities, consolidating user assets from consensus and simplifying the user experience for wider access.

According to Venables, the use of MPC opens the way for additional features and functions, which further increases the space of the self-contained wallet.

BNB Price Prediction: Recovery or Crash?

While the weekly time frame offers a mostly bearish outlook, the daily trend reversal offers hope.

During this time frame, BNB price held above the $225 small horizontal support area and could form a double bottom, as a bullish pattern (green icons).

Also, the daily RSI has formed a hidden bullish divergence, which is a sign of trend continuation. Although it is important to know that the indicator is decreasing and below 50. If the price of BNB falls, it can increase by 13% and reach the next resistance at $260.

Despite this high BNB price forecast, a daily close below around $225 means that BNB price is still correcting. In this case, an 11% drop to a support area at $205 could follow.

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