For the last two months of 2021, the $500 mark is an important support for the BNB bulls. However, entering 2022, the bears overwhelmed the coin and extended the correction below $500. Receiving strong support from the $400 mark, BNB price is recovering back to the $500 level, but this time a potential resistance level.
Main technical points:
- BNB price chart showing a bearish crossover of the 50 and 100 . DMA
- The MACD shows a bullish crossover below the neutral line
- The 24-hour trading volume on Binance Coin is $2.07 billion, showing a loss of 49.5%.
The source-Tradingview
Previously when we mentioned an article about Binance Coin, the BNB/USD pair broke the significant support of $445. The bear attack continued and the price dropped to $400 as warned.
However, strong demand pressure from this support area immediately rejected the coin price, indicating a bullish reversal. This V-shaped price recovery is now counting straight to $500 as a new resistance.
The Moving Average Convergence Divergence provides a breakout in an uptrend between the MACD and the signal line, predicting a buy signal for crypto traders.
This recent bounce has reclaimed the 200 DMA, indicating its bullish bias. However, the chart also shows a bearish crossover of the 50 and 100 DMAs, inviting more sellers to sell the coin.
BNB price faces a combined resistance from $500 and a descending trendline
The source- Tradingview
The Binance coin price is currently trading at $492, showing a 21% growth from the $400 support. Furthermore, the price will soon test the aggregate resistance of $500 and a long descending trendline coming.
While this technical level could provide a strong rejection to the coin price and prolong the correction, a break from the overhead resistance could present an excellent upside opportunity.
The average directional movement index shows a sudden drop in its value, indicating that bearish momentum is waning in the coin. However, a further increase in the price of the coin could start a rally in the ADX slope.
- Resistance: $500, $570
- Support Level: $445, $400