BNB price started a fresh decline from 0 resistance zone. The price is now retesting the 0 support and is at risk of more downsides.
- BNB price is gaining bearish momentum from the 0 resistance.
- 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 at 5 on the 4-hour chart of the BNB/USD pair (data source from Binance).
- The pair might continue to move down if it fails to stay above the 0 support.
BNB Price Takes Hit
In the past few days, BNB price made more than three attempts to clear the 0 resistance zone. However, the bears remained active and protected more gains.
As a result, there was a bearish reaction below the 5 level, like Bitcoin and Ethereum. There was a break below a key bullish trend line with support at 5 on the 4-hour chart of the BNB/USD pair. The pair even declined below the 0 level and tested the key support at 0.
A low is formed near 0.3, and the price is now struggling to correct higher. BNB price is now trading below 0 and the 100 simple moving average (4 hours). Immediate resistance is near the 8 level or the 23.6% Fib retracement level of the recent decline from the 0 swing high to the 0 low.
Source: BNBUSD on TradingView.com
The next resistance sits near the 5 level. It is close to the 50% Fib retracement level of the recent decline from the 0 swing high to the 0 low. A clear move above the 5 zone could send the price further higher. In the stated case, BNB price could test 0. A close above the 0 resistance might set the pace for a larger increase toward the 5 resistance. Any more gains might call for a test of the 0 level.
More Downsides?
If BNB fails to clear the 5 resistance, it could continue to move down. Initial support on the downside is near the 0 level.
The next major support is near the 5 level. The main support sits at 2. If there is a downside break below the 2 support, the price could drop toward the 0 support. Any more losses could initiate a larger decline toward the 0 level.
Technical Indicators
4-Hours MACD – The MACD for BNB/USD is gaining 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 – 0, 5, and 2.
Major Resistance Levels – 8, 5, and 0.