BNB down 10% for the week, is $ 500 next target?
- Key Support Level: $ 516
- Key Resistance: $ 600
After breaking the flag (blue), the NBB rebounded nearly 50%, but the momentum was insufficient to lift it above all-time highs. After several failed attempts, the bears got in, pushing the price below the USD 600 support that is currently acting as resistance. If the price continues to drop, the BNB can find support at $ 516.
BNB / USDT 4-hour chart | Source: TradingView
Volume: Volume was strong when the $ 600 support was broken. This shows that the bears are in control of price and the trend is now tilted down.
RSI: The RSI is in free fall on the daily timeframe after falling below the 70 level, but on the 4 hour timeframe, the RSI is in the oversold territory, trying to move up. This points to a possible short-term rally.
MACD: MACD created a bearish cross. Whenever this happens, the uptrend ends and a sharp correction follows. The best hope for the bulls is that they can stop the downside at $ 500 and consolidate there before starting a new rally.
Daily BNB / USDT Chart | Source: TradingView
The current trend is down. It is best to wait for the price to drop to strong support before making any further judgments. The support at $ 516 is a good start for the bulls.
However, the steady decline over the past few days has pushed the short-term indicators into oversold territory. As a result, there may be a short-term rally before the price corrects further.
In this case, the key level to look up at is $ 600.
You can see the price from BNB Here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cryptopotato