BNB finds itself under fresh selling pressure as its recent recovery attempt fails, leaving the cryptocurrency vulnerable to further losses. Despite a brief bounce, BNB’s failure to clear key resistance levels has raised concerns of a deeper decline. With technical indicators signaling upcoming weakness, the question now is whether the token can regain its footing or whether further losses are inevitable.
As bearish sentiment grows, this analysis aims to assess technical indicators that signal weakness in BNB’s price action and assess whether the asset can recover or face further downside. By exploring key support levels, market sentiment, and price trends, the goal is to determine BNB’s next move and the likelihood of a bullish trend reversal or extended bearish momentum.
Key Technical Indicators Flashing Warning Signs
BNB recently entered bearish territory on the 4-hour chart, falling just below the 100-day Simple Moving Average (SMA) and approaching the critical support level of $531. This drop below the 100-day Simple Moving Average (SMA) shows that strength is waning and with sellers taking control, the cryptocurrency faces the possibility of more losses.
The 4-hour Relative Strength Index (RSI) analysis shows that the signal line has dropped below the 50% threshold towards 42%, indicating that buying pressure is waning as the RSI moves deeper into bearish territory. Typically, an RSI reading below 50% implies that sellers are taking control, which could lead to bearish pressure.
After facing resistance at $587, BNB has shown a significant downside movement on the daily chart, marked by the formation of a sharp bearish candle. The price has now fallen towards the 100-day SMA, signaling increased selling pressure. If the negative trend continues, BNB could continue to decline further, leading to a decrease in buying interest.
Furthermore, a closer look at the RSI on the 1-day chart shows that the signal line has once again dropped below the 50% level, now at 48%, after previously rising above it. Unless buyers step in to change the momentum, the market could fall further, as the current RSI level shows weakening buying interest and increased bearish control.
Trading Strategy: Navigating BNB's Bearish Pressure
BNB’s recent price action suggests further downside is likely if the bearish momentum strengthens. If the price hits the key $531 level and closes below it, this could pave the way for further losses, potentially pushing the asset down to $500.
However, if buyers step in and regain control at $531, there is a chance that the price could reverse to the upside and start rising towards the 605 resistance, especially if the RSI shows signs of recovery.
