The News Crypto -
- 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 Coin’s 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.
BNB’s 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 BNB’s tenuous hold on the $450 support level, while the higher price rejection observed in Sunday’s trading suggests additional selling pressure emanating from the 50-day EMA.
This confluence of bearish factors has stalled BNB’s recovery before it could challenge the overhead trendline, leaving the token vulnerable to further downside.
Currently trading at $507.9, BNB’s 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 BNB’s 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 BNB’s outlook. The token’s 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.
This content was originally published on The News Crypto
