BNB Rejection At Key Level Hints At A Potential Price Correction
17 Outubro 2024 - 10:00AM
NEWSBTC
BNB has faced a significant rejection at a critical resistance
level, raising concerns among traders about a potential price
correction. After an impressive rally, the momentum has faltered,
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 step in. However, the big
question is whether this rejection marks the beginning of a
downward correction or if the bulls can muster enough strength to
regain their footing and continue pushing higher. As the market
navigates this pivotal moment, this piece 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 Toward A Downside Correction For BNB
Recently, BNB’s price has turned bearish on the 4-hour chart,
pulling back toward the 100-day Simple Moving Average (SMA) after
facing rejection at the $605 resistance level. This downward move
signals a shift in market sentiment as bulls struggle to maintain
upward momentum. The rejection at the $605 resistance level has
triggered heightened selling pressure that could push the price
lower for a potential correction. An analysis of the 4-hour
Relative Strength Index (RSI) reveals that the signal line has
dropped to 57%, retreating from its previous position in overbought
territory. Typically, this decline indicates that the bullish
momentum is weakening after reaching a peak, as buyers are
beginning to lose steam. Related Reading: BNB Under Siege: Failed
Recovery Sparks Fears of Deeper Losses Furthermore, on the daily
chart, BNB is exhibiting negative momentum, as evidenced by the
formation of a bearish candlestick, despite trading above the
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, it may
lead to a more significant price drop. Finally, on the 1-day chart,
the RSI has experienced a decline to 69% after rising to 62%,
reflecting strong optimistic sentiment and buying pressure.
Although the RSI remains above 60%, which suggests a bullish
outlook, the recent drop signals that the upward momentum may be
slowing down. Key Support Levels To Watch After The Rejection
Following BNB’s recent rejection at the $605 resistance level, the
critical support zone to watch is around $531, where buying
interest may emerge. If the price drops below this level, it could
signal a deeper bearish move, with the potential to push BNB down
toward the $500 mark and beyond. In addition, 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 short term. Related Reading: BNB Price Struggles to Hold
$500: Is a Breakout Coming? However, should the bulls manage to
mount a comeback and push the price above $605, the asset could
continue its upward movement toward the next resistance range at
$635. A successful breach of this level may trigger additional
gains, allowing the price to challenge other resistance points
above. Featured image from Adobe Stock, chart from Tradingview.com
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