Is the BNB Price Showing Signs of Bullish Exhaustion? Should Short-term Dips be Considered Attractive?

Is the BNB Price Showing Signs of Bullish Exhaustion? Should Short-term Dips be Considered Attractive?


BNB Price Struggles to Break Resistance

The price of BNB (Binance Coin) is having a hard time gaining momentum above the $320 resistance level. Currently, it is trading near $310 and the 100 simple moving average on the 4-hour chart.

Formation of Declining Channel or Bullish Flag Pattern

A major declining channel or a bullish flag pattern is forming with resistance near $316 on the 4-hour chart of the BNB/USD pair. This indicates that there is a possibility of an upward move if the price remains above the $288 and $282 support levels.

BNB Price Holds Support

After finding support above $280, the price of BNB started to increase. It managed to surpass the $305 and $315 resistance levels. However, it faced resistance near $320.

Currently, the price is correcting its gains but the downside seems limited compared to Bitcoin and Ethereum. The price has dipped below $312 and is now approaching the 50% Fibonacci retracement level of the upward move from the swing low to the high.

BNB price is currently trading around $310 and is supported by the 100 simple moving average on the 4-hour chart. There is also a major declining channel or bullish flag pattern forming with resistance near $316.

Source: BNBUSD on TradingView.com

Potential for Further Upside Movement

If BNB manages to break above the immediate resistance at $315 or within the channel region, the next resistance level is near $320. A clear move above this zone could lead to further upward movement, with a possible test of $340.

A close above the $340 resistance could set the stage for an even larger increase towards the $350 resistance. If the price continues to rise, it might eventually reach the $375 level.

Possibility of More Downsides

If BNB fails to break the $315 resistance, it could experience further downward movement. The first support level on the downside is around $300 or the 61.8% Fibonacci retracement level from the swing low to high.

The next major support level is near $292, followed by the main support at $288. If the price breaks below this support, it could drop towards $282 and potentially even further towards $262.

Technical Indicators

The MACD for BNB/USD on the 4-hour chart is losing momentum in the bullish zone. The RSI (Relative Strength Index) is currently below the 50 level.

Hot Take: BNB Price Struggles to Break Resistance as Downside Risks Remain

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The price of BNB is facing challenges in breaking above the $320 resistance level. While there is potential for an upward move if it stays above key support levels, there are also risks of more downsides if it fails to clear resistance levels. Traders should keep a close eye on these levels and monitor technical indicators for further insights into BNB’s price movement.

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