BNB witnessed a strong broke out last week but is now looking weak again after dropping off a new all-time high. It lost a key level during the week but is now back above the level following a small bounce.
Breaking out from a two-month accumulation phase earlier last week, BNB rallied to a new high of $721.8 but unfortunately lost momentum due to a sharp rejection. It dropped and remained weak throughout this week.
Following the price actions in the past two weeks of trading, BNB lost a dynamic support trendline to a weekly low of $590. It recovered briefly on Friday and now trades at $606. This support trendline, which is now acting as resistance is likely to pose a threat to further recovery.
If this week’s drops turn out to be a retest of last week’s breakout, we can expect a bigger upward movement in the future. As shown on the daily chart, BNB currently sits well above the $587 support level for the past three weeks.
Holding this support solidly could fuel a buyback to the top, creating a new double-bottom pattern for a massive bullish run. Otherwise, the asset may initiate more sell-offs in the near term.
BNB Key Level To Watch
BNB has seen a slight bounce but is still struggling to gain momentum as it faces a minor resistance level of $614.4. The major resistance for an increase is $631.4, followed by $645 and $669. Higher resistance levels are $692 and $721.8 recently marked as a new high.
Losing the holding $587 support could cause more dips to the $560 level in no time. An extension from there could bring us back to May’s lowest level of $536.7.
Key Resistance Levels: $631.4, $645, $669
Key Support Levels: $587, $560, $536.7
- Spot Price: $606
- 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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