BNB Price Approaching $500 Resistance

BNB Price Struggles Amidst Growing Bearish Pressure

With Bitcoin struggling to hold above the $60K mark, the altcoin market recovery is taking a significant hit. Over the past 24 hours, $137M in liquidations have occurred, intensifying bearish pressure on altcoins. The question now is: will the BNB price trend survive the growing supply pressure?

Binance Recovery Halts at 200D EMA

Binance Coin (BNB) has seen a tumultuous period, with its recovery halting at the 200-day exponential moving average (EMA). A long-tail candle formation shows Binance maintaining dominance above the $450 psychological mark. The BNB price managed a V-shaped reversal, pushing above the $500 milestone and the 200D EMA.

However, the bull run failed to absorb the overhead supply pressure, resulting in a 3.78% drop on Sunday. This bearish comeback has put stress on the $500 level, and there are warnings of another potential drop to the $455 mark.

Additionally, the higher price rejection in Sunday’s candle indicates further supply pressure from the 50D EMA, leading to an abrupt reversal in the recovery run before reaching the overhead trendline.

Currently, BNB is trading at $507.9, with an intraday move of 0.81%, resulting in a Doji candle formation. This candle suggests a bullish attempt to hold onto the $500 psychological milestone, but the overall outlook remains uncertain.

Technical Indicators

• MACD Indicator: The MACD and signal lines are on the verge of a positive crossover, but the sudden supply surge has delayed this bullish signal, indicating potential continued bearish pressure.
• EMA Analysis: The failure to sustain above the 200D EMA, coupled with rejection from the 50D EMA, raises concerns about a potential bear cycle.

Will BNB Price Sustain the $500 Level?

According to Fibonacci retracement levels, BNB has failed to hold above the 23.60% Fibonacci level, leading to a rapid decline. The price is now precariously hovering near the $500 psychological support, and a break below this level could trigger a more significant freefall for Binance Coin.

The next major support zone for BNB lies between $455 and $450, a critical test for the token’s resilience. Holding above this support could provide a launchpad for a renewed recovery. However, if breached, BNB may enter a more extended bearish phase.

Conclusion

BNB is at a crucial juncture, with the $500 psychological level serving as a potential make-or-break point. Technical indicators point towards a bearish outlook, compounded by broader market conditions that continue to weigh heavily on altcoins. The coming days will be pivotal as investors and traders closely monitor BNB’s price action to see if it can withstand the growing supply pressure and maintain its standing as a leading altcoin in the cryptocurrency market.