BNB price struggled above $720 and began a downward correction. The price is now moving lower and there is a risk of further declines below $600.
- BNB price started a new decline below the $650 support area.
- The price is now trading below the $650 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance at $650 on the hourly chart of the BNB/USD pair (data source from Binance).
- It is possible that the pair will gain downward momentum if there is a close below the $600 support level.
BNB price pares gains
After a significant rally, BNB price struggled near the $720 resistance level. As a result, there was a bearish reaction below the $680 support level, like Ethereum and Bitcoin.
The price fell below the $650 support level and the 100 simple moving average (4-hours). It traded as low as $613 and is currently consolidating losses below the 23.6% Fib retracement level of the downward move from the $724 swing high to the $613 low.
The price is now trading below the $650 level and the 100 hourly simple moving average. Immediate resistance is near the $630 level. The next resistance is near the $640 level.
There is also a major bearish trend line forming with resistance at $650 on the hourly chart of the BNB/USD pair. A clear move above the $650 area could send the price higher. In the mentioned case, BNB price could test the $665 level. A close above the $665 resistance could set the pace for a larger increase towards the $672 resistance. Any further gains may require a test of the $680 level in the coming days.
More losses?
If BNB fails to break above the $640 resistance level, it may continue to move lower. Initial support on the downside is near the $615 level.
The next major support is near the $605 level. The main support is at $600. If there is a downside breakout below the $600 support level, the price could fall towards the $580 support level. Any further losses could lead to a bigger decline towards the $550 level.
Technical indicators
Hourly MACD – The MACD for BNB/USD is accelerating into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BNB/USD is currently below the 50 level.
Key Support Levels – $605 and $600.
Major resistance levels – $630 and $650.
