BNB Under Siege: Failed Recovery Sparks Fears of Deeper Losses
October 11 2024 - 3:30PM
NEWSBTC
BNB finds itself under renewed selling pressure as a recent
recovery attempt falls short, leaving the cryptocurrency vulnerable
to further losses. Despite a brief upward movement, BNB’s failure
to break through key resistance levels has sparked concerns about a
deepening decline. With technical indicators signaling potential
weakness ahead, the question now is whether the token can regain
its footing or if further losses are inevitable. As bearish
sentiment intensifies, this analysis aims to evaluate the technical
indicators signaling weakness in BNB’s price action and assess
whether the asset can stage a recovery or face more declines. By
exploring key support levels, market sentiment, and price trends,
the goal is to determine BNB’s next move and the likelihood of a
bullish reversal or sustained bearish momentum. Key Technical
Indicators Flash Warning Signs BNB has recently entered pessimistic
territory on the 4-hour chart, dipping just below the 100-day
Simple Moving Average (SMA) and approaching the crucial $531
support level. This drop below the 100-day SMA indicates weakening
strength, and with sellers taking control, the cryptocurrency faces
the potential for more losses. An analysis of the 4-hour Relative
Strength Index (RSI) shows that the signal line has dropped below
the 50% threshold toward 42%, suggesting that buying pressure is
waning, as the RSI moves deeper into bearish territory. Typically,
an RSI reading below 50% implies that sellers are gaining control,
which could lead to downward pressure on the price. Related
Reading: BNB Battles Persistent Bearish Pressure, Will $500 Be The
Next Stop? After facing resistance at $587, BNB has shown
significant downbeat movement on the daily chart, marked by the
formation of a strong bearish candlestick. The price has now fallen
toward the 100-day SMA, signaling mounting selling pressure. If the
negative trend continues, BNB may experience additional declines,
leading to a reduction in buying interest. Furthermore, a closer
look at the RSI on the 1-day chart shows that the signal line has
once again dropped below the 50% threshold, now sitting at 48%,
after previously rising above it. Unless the bulls step in to shift
momentum, the market could be set for more drops, as the current
RSI level suggests weakening buying strength and heightened bearish
control. Trading Strategy: Navigating BNB Bearish Pressure BNB’s
recent price action indicates potential continued declines if
downbeat momentum intensifies. If the price hits the critical $531
mark and closes below it, this could pave the way for further
losses, possibly driving the asset down toward the $500 level.
Related Reading: BNB Price Tops $600: Can the Rally Continue?
However, should buyers step in and regain control at the $531
level, there is a chance for a bullish reversal and the price will
start moving upward toward the 605 resistance level, especially if
the RSI shows signs of recovery. Featured image from Shutterstock,
chart from Tradingview.com
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