Binance Coin (BNB) has seen some volatility lately, which might have unsettled investors. However, there is still hope in the market. When examining the 4-hour chart for the BNB/USD pair, it’s clear that a significant support level has been tested. Now, holding this support level is crucial for the start of a new upward rally.
BNB Coin Experiences a 25% Correction
BNB’s price underwent a downward correction from the $645 resistance area recently. However, with the price testing the important support region around $500, signs of a rebound are being observed. The price, currently trading around $506, is noted to be close to the 100 simple moving average.
It’s important to consider the presence of a significant downtrend line near the $520 resistance level. However, if the price remains above the mentioned support level, a new attempt to rise could occur.
Could the $645 Level Be Seen Again?
Recent BNB price analyses have discussed the potential for further gains above the $550 resistance area. Once the price surpassed this level, it demonstrated a stronger performance than Bitcoin and Ethereum, overcoming the $600 resistance.
Currently, there is speculation that the BNB price could test the $580 resistance and that closing above this level could lay the groundwork for a larger rally. In this case, it seems possible for the price to test the $645 level in the coming days.
When Might the Downtrend Continue?
If BNB fails to surpass the $520 resistance, the downtrend could continue. Looking at the current situation, the first support level in a downward move for BNB is around $500. However, a more pronounced support is positioned near the $470 level.
The truly critical support level is around $430. If a breakdown occurs below this level, it is anticipated that the price could fall towards the $400 support. Moreover, this could trigger a larger downtrend, potentially leading to a decline to the $350 levels.
Technical indicators also support this bearish outlook. The 4-hour MACD for the BNB/USD pair is gaining momentum in the bearish zone. Similarly, the 4-hour RSI (Relative Strength Index) is currently trending below the 50 level, indicating that selling pressure could persist.
