- BNB is undergoing an ABC correction after completing its 5th wave, with the B wave potentially pushing prices toward the $700 region.
- Technical indicators show BNB trading above the 50-SMA at $604, signaling strong support, but a drop below $600 may trigger further declines.
- Traders watch resistance at $700 for a breakout, which could restart an impulse wave, or a rejection that may lead prices to $500-$550.
Recent analysis by Alpha Crypto Signal shows that BNB has completed its 5th wave impulsive move and is now undergoing a corrective phase in an ABC pattern. This technical cycle signals potential market movements and key support levels for traders.
Elliott Wave and ABC Correction Analysis
The tweet from Alpha Crypto Signal explains that BNB has finished its impulsive five-wave cycle. Wave 3 was the largest upward movement, while Wave 5 peaked before the correction began. The analysis notes that the corrective phase follows an ABC structure. Wave A, indicating the first downward move has been completed. Currently, BNB is in the B wave retracement stage, which may push the price toward the $700 region. The B wave aligns with the trendline resistance that previously served as support.
The analysis further suggests that the C wave may not lead to a significant drop due to BNB’s inherent strength. A manipulated wick toward the $520 region is possible, yet it remains too early to confirm. This technical setup provides insight into BNB’s potential price trajectory as traders monitor the corrective pattern closely.
Moving Averages and Volume Analysis
The 9-period EMA stands at $626.91 and the 50-period SMA at $604.53.Trading above 50-SMA, which is a long-term support, and can signal a rebound if sustained on a bullish note. Breaking below $600, however, might result in a further decline towards supports around $500-$550.
Volume analysis shows that strong volume surges typically accompany uptrends. In contrast, volume decreases during corrections, indicating market uncertainty. Today’s moderate volume suggests a balance between buyers and sellers as BNB negotiates its corrective phase.
Trading Strategies and Final Outlook
The analysis recommends closely watching BNB as it approaches the trendline resistance near $700. If BNB breaks above $700, the ABC correction may be invalidated, potentially restarting a new bullish impulse. Conversely, rejection at $700 could see the price drop toward $500-$550.At the time of writting, BNB is trading at $627.15 with a 0.88% decline in the last 24 hours and a 2.57% increase over the past week. Traders should monitor key support levels and wave patterns to guide future decisions as BNB’s corrective phase unfolds.
