BNB price started a major decline and dived below the 0 support. The price is now gaining bearish momentum and might even test 0.
- BNB price started a major decline below the 0 support zone.
- The price is now trading below 0 and the 100-hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at 5 on the hourly chart of the BNB/USD pair (data source from Binance).
- The pair could extend losses and even test the 0 support in the near term.
BNB Price Dives 20%
In the past few days, BNB price saw a steady decline from the 0 resistance, like Ethereum and Bitcoin. In the past 2-3 sessions, the bears took control and pushed the price below the 0 support zone.
The price is down 20% and it even spiked below the 5 support. A low was formed at 6.1 and the price is now showing a lot of bearish signs. There are hardly any signs of a recovery wave, and the price is well below the 23.6% Fib retracement level of the downward move from the 0 swing high to the 6 low.
The price is now trading below 0 and the 100-hourly simple moving average. If there is a recovery wave, the price could face resistance near the 5 level. The next resistance sits near the 2 level. There is also a connecting bearish trend line forming with resistance at 5 on the hourly chart of the BNB/USD pair.
A clear move above the 5 zone could send the price higher. In the stated case, BNB price could test 0 or the 50% Fib retracement level of the downward move from the 0 swing high to the 6 low.
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 in the coming days.
More Losses?
If BNB fails to clear the 2 resistance, it could continue to move down. Initial support on the downside is near the 5 level.
The next major support is near the 5 level. The main support sits at 0. If there is a downside break below the 0 support, the price could drop toward the 2 support. Any more losses could initiate a larger decline toward the 0 level.
Technical Indicators
Hourly MACD – The MACD for BNB/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BNB/USD is currently below the 25 level.
Major Support Levels – 5 and 0.
Major Resistance Levels – 5 and 2.