BNB recently fell below the critical $500 support level, signaling a continuation of the downtrend. This decline reflects increased selling pressure and growing bearish sentiment in the cryptocurrency market.
As BNB falls below this significant threshold, analysts and traders are closely watching for further downside, potentially targeting lower support levels. A break above $500 is a key indicator of ongoing market weakness, suggesting that BNB could face further challenges in the near future.
Using technical indicators to provide comprehensive insight into potential future moves, key support levels to watch, and strategies for investors and traders to aid them survive the ongoing crisis, this article examines the bearish sentiment surrounding BNB price.
At the time of writing, BNB’s price is down over 10%, trading at around $471, with a market valuation of over $69 billion and trading volume of over $2 billion. Over the past 24 hours, BNB’s market capitalization has fallen by 10.88%, while trading volume has increased by 37.43%.
Technical indicators underline persistent bearish market conditions
BNB price on the 4-hour chart is actively bearish, trading below the 100-day straightforward moving average (SMA). At the time of writing, the price has made a huge Drop below support level of $500, which triggered an even more gloomy reaction to the cryptocurrency.
With the formation of 4-hour Moving Average Convergence (MACD), BNB price is expected to face further decline as MACD histograms are trending below the zero line with powerful momentum. Furthermore, the MACD line and signal line have fallen sharply and are trending below the zero line with good spread.
On the 1-day chart, we can see that BNB is trading below the 100-day SMA and is trying to drop its third bearish candle in a row with powerful momentum. This development suggests that the price is still actively bearish and could continue to decline.
Finally, the 1-day MACD signals a potential further decline in BNB price as the MACD histograms are trending below the zero line with powerful momentum. Both the MACD line and the MACD signal line are also trending below zero after crossing below it.
What to watch next at BNB
Current analysis reveals that BNB price could be heading towards the $357 support level. If BNB price reaches the $357 support level and breaks below, it could continue falling to test the $202 support level and potentially move on to challenge other lower levels if it breaks through the $202 level.
However, if the crypto asset encounters a rejection at the $357 support level, it will start moving higher again towards the $500 level. If it breaks above this level, it could continue climbing to test the $635 resistance level and potentially move on to testing other higher levels if it breaks through the $635 resistance level.
Featured image from Adobe Stock, chart from Tradingview.com
