BNB price avoided a major decline below 0 and recovered against the US Dollar. It climbed above 5 and now faces many hurdles near 5 and 0.
- BNB price is slowly moving higher toward the 0 resistance.
- The price is now trading above 5 and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support at 1.5 on the 4-hour chart of the BNB/USD pair (data source from Binance).
- The pair might gain bullish momentum if there is a clear move above 0.
BNB Price Recovers 10%
These past few days, BNB price managed to start a recovery wave above the 0 resistance. The recent positive moves in Bitcoin, Ethereum, and other altcoins sparked a decent increase in BNB.
There was a steady move above the 2 and 5 resistance levels. The price even climbed toward the 5 resistance. A high is formed near 5.8 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the 2.5 swing low to the 5.8 high.
BNB is also trading above 5 and the 100 simple moving average (4 hours). Besides, there is a key bullish trend line forming with support at 1.5 on the 4-hour chart of the BNB/USD pair.
Source: BNBUSD on TradingView.com
If there is a fresh increase, the price could face resistance near the 5 level. The next resistance sits near the 0 level. A clear move above the 0 zone could send the price further higher. In the stated case, BNB price could test 5. A close above the 5 resistance might set the pace for a larger increase toward the 0 resistance.
Downside Correction?
If BNB fails to clear the 5 resistance, it could start a downside correction. Initial support on the downside is near the 0 level and the trend line.
The next major support is near the 5 level or 50% Fib retracement level of the upward move from the 2.5 swing low to the 5.8 high. If there is a downside break below the 5 support, the price could drop toward the 6 support. Any more losses could initiate a larger decline toward the 0 level.
Technical Indicators
4-Hours MACD – The MACD for BNB/USD is losing pace in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for BNB/USD is currently above the 50 level.
Major Support Levels – 0, 5, and 6.
Major Resistance Levels – 5, 0, and 5.