---$BNX
BNX/USDT Detailed Technical Analysis
Timeframe: 1D (Daily Chart)
Overview:
BNX has entered a critical demand zone between 0.7006 and 0.4715. This zone has historically been a strong area of support, where buyers step in to push the price higher. However, the price has been under significant pressure recently, as seen in the sharp drop towards the lower boundary of the zone.
Key Zones:
Demand Zone: 0.7006 - 0.4715
This is a crucial area where we could expect buyers to react. The previous time price visited this zone, we saw a significant rally.
Resistance Zone: 1.576031 - 1.749900
This is the next major area to watch on the upside. Should price recover, it could face selling pressure in this zone, which has proven to be a tough barrier for bulls in the past.
Technical Indicators:
RSI: Currently, the RSI stands at 28.28, which signals an oversold condition. There is a potential bullish divergence forming, suggesting that the downward momentum might be slowing down. If the RSI starts to rise from this level, it could indicate a reversal is on the horizon.
Price Action: The current price action shows a possible reversal at the demand zone, where buyers could step in. If the price holds above 0.7006, we might witness a bounce towards the resistance levels. However, failure to hold this zone could lead to a further decline, with the next key support around 0.4715.
Trading Strategy:
For those looking to enter a long position, the current demand zone offers a favorable risk-to-reward setup, especially with the RSI indicating potential bullish momentum.
Long Entry:
Entry Point: Around the current price level near 0.7006, provided thereâs confirmation of a reversal (e.g., bullish candlestick patterns, RSI divergence).
Targets:
First Target (T1): 1.576031
A break above this level would confirm the strength of the bullish move. Traders may consider taking partial profits here.
Second Target (T2): 1.749900
This is the upper boundary of the resistance zone, where a stronger bullish trend could take the price. This level is ideal for taking additional profits.
Stop-Loss:
Stop-Loss: Below 0.471500
If price breaks below the lower bound of the demand zone, it would invalidate the bullish setup and signal further downside. Protecting capital by setting a stop-loss below this level is crucial.
Conclusion:
BNX/USDT is at a pivotal point on the daily chart. While the demand zone provides a potential opportunity for a bullish reversal, traders should remain cautious of further downside if the price breaks below 0.471500. Watch for confirmation signals such as an uptick in RSI or bullish candlestick patterns before entering a long trade.
---
Disclaimer: This is not financial advice. Please conduct your own research before making any trading decisions.
---
