Bitcoin’s (BTC) price struggles below the $60,000 level, impacting the recovery process in the altcoin market. In the last 24 hours, investors expecting a rise faced liquidations worth $137 million, and the downward pressure on altcoins continues to increase. This raises the question of whether Binance’s altcoin BNB (BNB) can withstand the increasing supply pressure.
Decline Halted at 200-Day EMA
With the formation of a long-tailed candle, BNB continues to hold above the psychological level of $450. The price made a V-shaped recovery above the $500 level and the 200-day Exponential Moving Average (EMA), but this rally failed to absorb the supply pressure above the 200-day EMA, leading to a 3.78% drop on Sunday. This decline led to a retest of the $500 level, with warnings that the price could fall to the $455 level.
Additionally, the high price rejection in Sunday’s candle revealed additional supply from the 50-day EMA. This caused the recovery rally to end abruptly before reaching the upper trendline.
MACD and signal lines are about to stop making a positive crossover with BNB’s price falling. Therefore, the sudden increase in supply delays the positive signal from the MACD indicator. BNB’s failure to stay above the 200-day EMA and the upward rejection from the 50-day EMA indicate a bearish cycle.
Can BNB’s Price Stay Above the $500 Threshold?
According to Fibonacci levels, BNB’s price failed to hold above the 23.60% Fibonacci level, leading to a rapid decline. Currently, BNB is hanging by a thread around the psychological level of $500. A drop below this critical level could trigger a free-fall movement for the altcoin. The next support zone for the BNB token is between $455 and $450.
