Binance Coin (BNB) Holds Support: Can Solana (SOL) Follow Suit?

Both Binance Coin (BNB) and Solana (SOL) fell precipitously in Friday’s mega-crash. However, they have since recovered well. The latest reversal has $BNB holding onto support, while $SOL tries to do the same. Will they be successful?

A spectacular recovery for $BNB

Source: TradingView

The $BNB price fell harder than a lot of the major layer 1 altcoins, plummeting 31% on Friday and making its way down to retest the 100-day SMA. That said, if it fell hard, it then recovered fairly spectacularly - even making a new all-time high in the process. 

Since then, the law of gravity has intervened and the price has come back to the ascending trendline, where if the bulls get their way, a bounce could occur.

$BNB still very bullish

Source: TradingView

As can be seen in the weekly chart for $BNB, the price has risen in such a parabolic fashion that the first decent horizontal support is not to be found until way down at $676, which is nearly half of today’s price. Therefore, trendlines have become important, and if the current one doesn’t hold, the next drop would be down to $1,000, and the major trendline just below this level.

This is all very well in a bull market, but when the crypto market eventually does descend into a bear market, the $BNB price could have a long way to fall without market structure below it.

Nevertheless, as things stand $BNB is still very bullish. Price targets looking further out are at $1,486 at the 2.618 Fibonacci level, and then $1,977 at the 3.618 Fibonacci level. 

$SOL falls back below major support level

Source: TradingView

While the $SOL price only came down 20% on Friday, relatively speaking, the recovery is still causing the bulls a big struggle. The price came down perfectly to the major ascending trendline, retested it, and climbed back up with alacrity. 

However, after getting above the major $202 horizontal resistance level and also the next ascending trendline, the bears were able to haul the price back down below both, where it is currently.

Nevertheless, there is plenty of the day left, and the bulls would want to at least confirm back above the major resistance. Much might depend on how the U.S. stock market shapes up when it opens later today.

$SOL has strong price structure below

Source: TradingView

Viewing the $SOL price in the weekly time frame it can be observed that there is plenty of price structure below the price, potentially allowing $SOL to go higher from a very strong base. The next price step can be seen to be forming at $250. If the price can get there and confirm above, this could form the next healthy step in price structure.

For the current price action, the fact that the Stochastic RSI indicators are falling is not a good sign. That said, if the price can hold above the $176 major support level while the indicators come down to the bottom, the resulting bounce could determine the rest of the bull market for $SOL. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.