Binance Coin [BNB] Recently Broke Its Ascending Trendline, Triggering a Sharp Decline That Tested the $500 Level Before Bouncing Back to the $560 Support Zone

Binance Coin [BNB] recently broke it's ascending trendline, triggering a sharp decline that tested the $500 level before bouncing back to the $560 support zone.

Binance Coin (BNB) is showing signs of a potential trend reversal as it forms a double-bottom pattern and tests the $560 support zone following a breakdown of the ascending trendline.

After a sharp decline that tested the $500 level, Binance Coin has bounced back to the crucial $560 support zone. The breakdown of the trendline led to rapid price swings between $732 and $500, where BNB currently trades.

Chart: TradingView

The next key resistance is around $732 - $740, which also coincides with a previous structural high. If this level is breached, a continuation of the rally towards the $793.00 resistance becomes likely.

However, failure to break higher and rejection in the $600 - $650 range could lead to another sell-off. A break below $560 would invalidate the double bottom and confirm a bearish continuation, targeting the $500 level. Further downside risks could extend towards $400.

The reaction at $560 remains critical. If buyers step in and volume supports accumulation, a recovery towards $650 and higher levels remains possible.

On the other hand, a drop below $500 would indicate continued weakness, exposing BNB to deeper corrections towards long-term support at $400.

The BNB/BTC historical risk levels chart highlighted a value of 0.199, indicating a low-risk buying opportunity based on past trends.

As highlighted by IntoTheCryptoverse, the historical risk levels chart for Binance Coin (BNB) against Bitcoin (BTC) showed a reading of 0.199. This level indicated a low-risk buying opportunity when considering how the coin typically performed in the past.

As the chart showed, high risk, which was anything over 0.6, usually coincided with BNB price peaks, while low risk, which was anything less than 0.2, usually marked strong accumulation zones.

The coin’s risk level dropped below 0.2 in early 2021, which was also around the time when the coin began a massive rally. The price remained relatively strong, trading above 0.007 BTC while the risk continued to decrease.

If the risk remained low, Binance Coin could attract more accumulation and push higher, reclaiming 0.009 or more against BTC.

But if the risk level surged past 0.4, it may signal a potential sell-off. And if the price dropped below 0.1, it would indicate extreme undervaluation, reinforcing the potential for a long-term buying opportunity.

In other news, an insider in Ronaldinho’s meme coin on Binance Smart Chain (BSC) had invested 48 BNB worth $29,247 to acquire 20.79M STAR10 tokens, according to Onchain Lens via X.

The insider had since sold 119,278 STAR10 for 54 BNB worth $33,106, securing some profits while still holding 20.68M STAR10 valued at $4.93 million.

This activity highlighted the growing speculative interest in BSC meme tokens, leading to increased transaction volumes and user engagement.

If the trends continued, they could boost BNB Chain adoption. This would in turn lead to higher demand for BNB, potentially driving its price upward as more traders participated.