BNB faced significant rejection at a critical resistance level, raising concerns among traders about a possible price correction. After an impressive racethe momentum disappeared, leaving the cryptocurrency at a crossroads.
This key level has proven to be a formidable barrier, indicating that selling pressure may be increasing as bears intervene. However, the big question is whether this rejection marks the start of a downward correction or whether the bulls can muster enough strength to regain their position. balance and keep pushing higher.
As the market navigates this crucial moment, this article will analyze BNB’s recent rejection at the critical resistance level and assess the implications for its price trajectory. By examining market trends, technical indicators and trading volumes, this analysis will explore the possibility of a correction and what it could mean for traders.
Indicators pointing to a negative correction for BNB
Recently, BNB price fell on the 4-hour chart, retreating towards the 100-day simple moving average (SMA) after facing rejection at the $605 resistance level. This downward movement signals a change in market sentiment, as bulls struggle to maintain upward momentum. Rejection at $605 resistance level triggered surge in selling pressure this could push the price lower for a possible correction.
An analysis of the 4-hour Relative Strength Index (RSI) reveals that the signal line has fallen to 57%, retreating from its previous position in overbought territory. Typically, this decline indicates that bullish momentum is weakening after reaching a peak as buyers are starting to lose steam.
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Furthermore, on the daily chart, BNB displays negative momentum as evidenced by the formation of a bearish candle despite trading above the level 100-day SMA. This situation reveals a possible contradiction in market sentiment. Meanwhile, if selling pressure continues and BNB is unable to maintain its position above the 100-day SMA, this could lead to a more significant price drop.
Finally, on the 1-day chart, the RSI registered a drop to 69% after rising to 62%, reflecting strong bullish sentiment and buying pressure. Although the RSI remains above 60%, which suggests a bullish outlook, the recent drop signals that the upward trend impulse may be slowing down.
Key support levels to watch after rejection
Following BNB’s recent rejection at the $605 resistance level, the critical level support The zone to watch is around US$531, where buying interest may arise. If the price falls below this level, it could signal a deeper bearish movement, with the potential to push BNB lower towards the level $500 mark and beyond. Furthermore, a break below these key levels could intensify selling pressure and set the stage for further declines, making them crucial areas for traders to monitor in the near term.
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However, should the bulls manages to mount a comeback and push the price above $605, the asset could continue its upward movement towards the next resistance band at $635. A successful breach of this level could trigger earningsallowing the price to challenge other resistance points above.
Featured image from Adobe Stock, chart from Tradingview.com