Binance Recovery Stalls: What’s Next?

BNB Price Recovering from $400 Support, Facing $490-$500 Resistance

Binance Coin (BNB), the native cryptocurrency of the Binance exchange, has started a recovery wave after testing the $400 support zone. However, the price is now facing significant resistance around the $490-$500 levels, which could potentially lead to another decline if the bulls fail to overcome these hurdles.

BNB Price Rebounds from $400 Support

In the recent past, Binance Coin (BNB) price had joined the broader market decline, dropping below the $450 and $435 support levels. However, a low was formed at $403, and the price has since started a recovery.

• BNB climbed above the $435 and $440 resistance levels.
• Crossed the 23.6% Fibonacci retracement level of the downward move from the $576 swing high to the $403 low.
• Cleared the $465 resistance level.

Currently, Binance Coin (BNB) is trading below the $500 mark and the 100-hourly simple moving average, consolidating near the 50% Fibonacci retracement level of the downward move from the $576 high to the $403 low.

Facing Resistance at $490 and $500

On the upside, the BNB price could face significant resistance near the $490 level. There is a key bearish trend line forming with resistance at $490 on the hourly chart of the BNB/USD pair, based on data from the Binance exchange.

The next major resistance sits near the $500 level. If BNB manages to break above this zone, it could pave the way for a test of the $515 resistance. A close above $515 might set the stage for a larger increase toward the $540 resistance, and potentially the $550 level in the near term.

Risk of Another Decline

However, if BNB fails to clear the $500 resistance, it could start another decline. The initial support on the downside is near the $465 level, followed by the major support at $450.

The main support for BNB lies at the $435 level. A downside break below this support could trigger a larger decline toward the $420 level, and potentially the $400 support zone.

Factors Influencing BNB Price

The recovery in BNB price is currently facing crucial hurdles at the $490-$500 resistance zone. This resistance is likely influenced by a combination of technical and market factors:

• Bearish Trend Line: The formation of a key bearish trend line with resistance at $490 on the hourly chart suggests that the bulls are facing significant technical resistance at this level.
• Broader Market Sentiment: The overall cryptocurrency market sentiment has been bearish in recent weeks, with major coins like Bitcoin and Ethereum also facing resistance at key levels. This broader market pressure could be weighing on BNB’s recovery.
• Trading Volume and Liquidity: The trading volume and liquidity around the $490-$500 resistance zone will play a crucial role in determining whether BNB can break through these levels or succumb to another decline.

Conclusion

In conclusion, BNB price has started a recovery from the $400 support zone, but it is now facing significant resistance at the $490-$500 levels. The outcome of the battle at these resistance levels will determine the next direction for the Binance Coin price.

If the bulls manage to clear the $500 resistance, BNB could see further upside momentum, potentially targeting the $515, $540, and $550 levels. However, if the price fails to overcome the $490-$500 hurdle, it could be at risk of another decline, potentially testing the $435 and $400 support areas.

Investors and traders will need to closely monitor the price action and trading volume around the key resistance zones to gauge the strength of the ongoing recovery and the potential for a continuation or reversal of the current trend.