BNB Rejection at Key Level Suggests Possible Price Correction

BNB has faced significant rejection at a critical resistance level, raising concerns among traders about a possible price correction. After an impressive meetingThe momentum has faltered, leaving the cryptocurrency at a crossroads.

This key level has proven to be a formidable barrier, indicating that selling pressure may be increasing as the bears intervene. However, the big question is whether this rejection marks the beginning of a downward correction or whether the bulls can muster enough strength to regain their position. foot and continue pushing higher.

As the market navigates this pivotal moment, this article will analyze BNB’s recent rejection at the critical resistance level and assess the implications for its price trajectory. By examining market trends, technical indicators and trading volumes, this analysis will explore the possibility of a correction and what it could mean for traders.

Indicators pointing towards a downward correction for BNB

Recently, BNB price has turned bearish on the 4-hour chart, retracing towards the 100-day simple moving average (SMA) after facing rejection at the $605 resistance level. This downward move indicates a change in market sentiment as bulls struggle to maintain bullish momentum. The rejection at the $605 resistance level has caused further selling. pressure that could push the price down for a possible correction.

An analysis of the 4-hour Relative Strength Index (RSI) reveals that the signal line has fallen to 57%, retreating from its previous position in overbought territory. Typically, this drop indicates that bullish momentum is weakening after reaching a peak, as buyers are starting to lose strength.

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Furthermore, on the daily chart, BNB is showing negative momentum, as evidenced by the formation of a bearish candlestick, despite trading above the 100 day simple moving average. This situation reveals a possible contradiction in market sentiment. Meanwhile, if the selling pressure continues and BNB fails to maintain its position above the 100-day SMA, it may lead to a more significant price decline.

Finally, on the 1-day chart, the RSI has seen a drop to 69% after rising to 62%, reflecting strong bullish sentiment and buying pressure. Although the RSI remains above 60%, suggesting a bullish outlook, the recent drop indicates that the bullish trend impulse may be slowing down.

Key Support Levels to Watch After Rejection

Following BNB’s recent rejection at the $605 resistance level, the critical point support The area to watch is around $531, where buying interest may arise. If the price falls below this level, it could signal a deeper bearish move, with the potential to push BNB towards the level. $500 mark and beyond. Furthermore, a break below these key levels could intensify selling pressure and set the stage for further declines, making them crucial areas for traders to monitor in the near term.

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However, should the bullfighting If it manages to recover and push the price above $605, the asset could continue its upward move towards the next resistance range at $635. A successful breach of this level may trigger earningsallowing the price to challenge other higher resistance points.

Featured image from Adobe Stock, chart from Tradingview.com