BNB finds itself under renewed selling pressure as its latest recovery attempt fails, leaving the cryptocurrency vulnerable to further losses. Despite the brief upward move, BNB’s failure to break through key resistance levels has raised concerns about a deeper decline. With technical indicators pointing to potential weakness ahead, the question now is whether the token can regain its footing or whether further losses are inevitable.
As bearish sentiment intensifies, this analysis aims to evaluate technical indicators indicating weak BNB price action and assess whether the asset can recover or face further declines. By exploring key support levels, market sentiment, and price trends, the goal is to identify what’s next for BNB and the potential for a bullish reversal or sustained bearish momentum.
Key technical indicators, flash warning signs
BNB recently entered the bearish zone on the 4-hour chart, falling just below the 100-day simple moving average (SMA) and approaching the crucial support level of $531. This drop below the 100-day SMA indicates weakening strength, and with sellers in control, the cryptocurrency faces the potential for further losses.
An analysis of the 4-hour Relative Strength Index (RSI) shows that the signal line has fallen below the 50% threshold towards 42%, indicating that buying pressure is easing, as the RSI moves deeper into the bearish zone. Typically, an RSI reading below 50% indicates that sellers are gaining control, which could lead to downward pressure on the price.
After facing resistance at $587, BNB showed a significant downward movement on the daily chart, which was marked by the formation of a strong bearish candlestick. The price has now fallen towards the 100-day simple moving average, indicating increasing selling pressure. If the negative trend continues, BNB may experience additional declines, resulting in decreased buying interest.
Furthermore, a closer look at the RSI on the daily chart shows that the signal line has once again fallen below the 50% threshold, and now stands at 48%, after rising above it previously. Unless the bulls step in to shift the momentum, the market may be poised for further declines, as the current RSI level indicates weakening buying power and increasing bearish control.
Trading Strategy: Navigating the Bearish Pressure of BNB
BNB’s recent price action indicates potential continued declines if bearish momentum intensifies. If the price reaches the $531 level and closes below it, this could pave the way for further losses, which could lead the asset to fall towards the $500 level.
However, if buyers step in and regain control at the $531 level, there is a chance of a bullish reversal and the price will start moving higher towards the 605 resistance level, especially if the RSI shows signs of recovery.
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