Amid the latest drops, BNB’s price declined by 3% weekly as it showed signs of weakness on a daily scale. However, it has bounced slightly from a weekly low but is currently footing another bearish move.
Last week marked an end to BNB’s retracement after experiencing a major recovery from $400 earlier this month. After facing a critical resistance at $600, it resumed selling and closed that week in a loss.
The bearish crossover led to more reductions this week and the price fell to $520 yesterday, although the crypto has increased a bit since then and is now briefly changing hands at around $540.
Due to the drops, BNB’s structure is now considered bearish again. A drop below the important $500 level could set the market up for a bigger crash in the next few days.
However, holding this important level well could fuel another increase with an inverse head and shoulder pattern on the daily chart. Such a bullish pattern will become valid if BNB successfully flips the critical resistance level that recently triggered drops.
Now that this resistance has become a tough obstacle for the bulls, BNB may remain bearish in the short term until it finds a breakthrough. As of now, the mentioned monthly low is the major support to watch for the next breakdown.
BNB Key Level To Watch
While yesterday’s low currently serves as temporal support, a drop below it could send the price to $496 and $454.7 by the end of the month. Below it lies $427.3 in case of more dips.
If the price bounces back, there’s a close resistance at $553 and $575 before pushing to the $605 resistance. A breakthrough that resistance should activate a rally to $634 and potentially $659 within a short time.
Key Resistance Levels: $553, $575, $605.6
Key Support Levels: $520, $496, $454.7
- Spot Price: $539
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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