Binance Coin Struggles to Maintain $500 Support: Whats Next For BNB?
- BNB price struggles to maintain $500 support amid broader market downturn.
- Technical indicators show mixed signals, with MACD nearing positive crossover but EMA suggesting bearish pressure.
- Failure to hold $500 could trigger a significant decline in Binance Coins value.
Binance Coin (BNB) finds itself at a critical juncture as the broader cryptocurrency market grapples with renewed bearish pressure. With Bitcoin struggling to breach the $60,000 mark, altcoins, including BNB, face mounting challenges in sustaining their recent recovery runs.
The past 24 hours have witnessed a staggering $137 million in buyer liquidations, amplifying the bearish sentiment across the crypto sphere.
BNBs recent price action paints a picture of resilience tinged with uncertainty. A V-shaped reversal propelled the token above the psychologically significant $500 level and the 200-day exponential moving average (EMA), offering a glimmer of hope to bullish investors.
Binance coin surge remains short-lived
However, this upward momentum proved short-lived as overhead supply pressure intensified, resulting in a 3.78% decline on Sunday.
The formation of a long-tail candle underscores BNBs tenuous hold on the $450 support level, while the higher price rejection observed in Sundays trading suggests additional selling pressure emanating from the 50-day EMA.
This confluence of bearish factors has stalled BNBs recovery before it could challenge the overhead trendline, leaving the token vulnerable to further downside.
Currently trading at $507.9, BNBs intraday price action has resulted in a Doji candle formation, indicating a momentary equilibrium between buying and selling forces. This formation potentially signals bullish attempts to defend the crucial $500 psychological threshold, though the outcome remains uncertain.
Technical indicators offer mixed signals regarding BNBs short-term prospects. The Moving Average Convergence Divergence (MACD) indicator teeters on the brink of a positive crossover, a development that could provide bullish impetus if confirmed.
However, the sudden surge in selling pressure has delayed this potentially positive signal, leaving traders in a state of anticipation.
The interplay between key EMAs further complicates BNBs outlook. The tokens failure to sustain momentum above the 200-day EMA, coupled with rejection at the 50-day EMA, hints at the possibility of an emerging bear cycle.
This technical setup suggests that BNB may face significant headwinds in its attempts to regain bullish footing.
Read more: https://thenewscrypto.com/binance-coin-struggles-to-maintain-500-support-whats-next-for-bnb/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
