The Binance Coin price is attempting to crawl back after crashing by almost 10% in the overnight session. BNB is trading at $356, which is slightly above the overnight low of $340. It has a market capitalization of more than $53 billion and is the fourth-biggest cryptocurrency in the world after Bitcoin, Ethereum, and Tether.
What happened: For starters, BNB is the native token for the Binance Smart Chain network, which is the biggest Ethereum killers in the world. The network simply allows developers to build decentralized applications like DeFi.
The platform has grown substantially, with PancakeSwap being the biggest DeFi project in the ecosystem. However, the network has been criticized for several security lapses and bugs. For example, an exploit made this month resulted in an $11 million loss from bEarn Fi.
The BNB price declined during the overnight session as part of the overall decline in cryptocurrencies. Indeed, according to CoinMarketCap, the total cryptocurrencies that it tracks have lost almost 4% of their total market capitalization. So, what next for the Binance Coin price?
Binance Coin price analysis
The two-hour chart shows that the Binance Coin price has made a modest recovery from its lowest level last week. It has jumped by almost 68% from where it was May 23rd. Along the way, the coin has moved between the 23.6% and 38.2% Fibonacci retracement levels. It has also formed a small ascending channel that is shown in purple and is along the 15-day and 25-day weighted moving averages (WMA).
It also seems like it has formed an inverted head and shoulders pattern. Therefore, there is a high probability that the price will resume the upward trend as bulls target the 50% retracement at $448, which is 26% above the current level. However, a drop below the 23.6% retracement at $322 will invalidate this prediction.
BNB price chart
Follow Crispus on Twitter.