BNB price (Binance coin) failed to settle above 5 and trimmed gains against the US Dollar. The price could decline heavily if it trades below 0.
- Binance coin price tested the 5 resistance before the bears appeared against the US Dollar.
- The price is now trading below 0 and the 100 simple moving average (4 hours).
- There was a break below a key bullish trend line with support near 0 on the 4-hour chart of the BNB/USD pair (data source from Binance).
- The pair might gain continue to move down unless there is a close above 5.
Binance Coin Price Fails Again
In the last analysis, we discussed the chances of BNB price recovering toward the 5 resistance zone. The price did climb higher toward the 5 resistance but failed to extend gains.
It started a fresh decline from the 5 zone. There was a break below a key bullish trend line with support near 0 on the 4-hour chart of the BNB/USD pair. The pair is now showing bearish signs below 0 and the 100 simple moving average (4 hours), like Bitcoin and Ethereum.
A low is formed near 1.1 and the price is now consolidating losses. On the upside, it is facing resistance near the 6.5 level and the 100 simple moving average (4 hours). It is close to the 23.6% Fib retracement level of the recent decline from the 5 swing high to the 1 low.
Source: BNBUSD on TradingView.com
A clear move above the 7 zone could send the price further higher. The next major resistance is near 5 or the 61.8% Fib retracement level of the recent decline from the 5 swing high to the 1 low, above which the price might rise toward 5. A close above the 5 resistance might set the pace for a larger increase toward the 0 resistance.
Another Decline in BNB?
If BNB fails to clear the 7 resistance, it could start another decline. Initial support on the downside is near the 1 level.
The next major support is near the 0 level. If there is a downside break below the 0 support, the price could drop toward the 2 support. Any more losses could send the price toward the 4 support.
Technical Indicators
4-Hours MACD – The MACD for BNB/USD is losing pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for BNB/USD is currently below the 50 level.
Major Support Levels – 1, 0, and 2.
Major Resistance Levels – 7, 5, and 5.