The price of Binance Coin (BNB) is battling to maintain support above the crucial $500 level. If the price closes below this zone, bearish momentum could intensify, leading to further declines.
Key Points:
BNB price began declining after facing resistance at $540.
It is now trading below $520 and the 100-hourly simple moving average (SMA).
A short-term rising channel with support at $500 is forming on the BNB/USD hourly chart (Binance data).
A close below the $500 support could trigger a bearish move.
BNB Price Faces Renewed Pressure
After failing to break the $540 resistance, BNB’s price followed the broader market downtrend, similar to Ethereum and Bitcoin. The token dropped below key support levels at $532 and $520 and briefly fell to $495, forming a low at $496. It has since been consolidating those losses, with the current price hovering around $500. A rising channel has developed with support at $500, but BNB remains below the 100-hourly SMA and the $525 resistance level.
Resistance Levels and Potential Recovery
If BNB attempts a recovery, the price may face resistance around $518, which coincides with the 50% Fibonacci retracement level of the recent decline from $538 to $496. A further resistance is located at $522, near the 61.8% Fib retracement level.
A decisive move above $522 could propel the price higher, potentially testing $535. A close above this level may pave the way for a larger rally toward the $540 resistance. Should this breakout occur, BNB could even target $550 in the near term.
Risk of Further Decline
On the downside, if BNB fails to break through the $522 resistance, another decline may be in store. The initial support to watch is $500, followed by more significant support at $496.
A break below $496 could lead to a more substantial decline toward $488. If that level also fails to hold, BNB may drop as low as $465, with further losses potentially bringing the price to $450.
Technical Indicators:
Hourly MACD: The MACD for BNB/USD is gaining strength in the bearish zone.
Hourly RSI: The RSI for BNB/USD is currently below the 50 level, indicating weak bullish momentum.
Major Support Levels:
$500, $496, $488
Major Resistance Levels:
$518, $522, $535
BNB’s price is at a crucial juncture, and whether it can hold the $500 support or break through the $522 resistance will likely determine its short-term direction.
Notice:
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