In a surprising turn of events, there has been a sharp falloff in the price of BNB, a prominent digital currency, possibly causing alarm among many crypto investors. The currency recently plunged below the significant $500 support mark and the subsequent developments suggest a tangible bearish momentum. As it stands, the possibility of this currency taking another dip to test the $420 mark seems very much a reality.
BNB’s dramatic descent began when it dropped under the security of the $550 support zone and proceeded to take a nosedive below $500 in a short amount of time. This particular plunge has taken the value of the cryptocurrency below the benchmark level of a 100-hourly simple moving average. The combination of these events is contributing to a pronounced bearish trend, signaled by the formation of a trend line bearing resistance pegged at $495.
The downward trajectory presently manifesting in the value of BNB mirrors a similar pattern observed with other cryptocurrencies such as Ethereum and Bitcoin. The past few trading sessions have unsurprisingly leaned in favor of the bears, pushing the currency value below the $500 support zone and sparking apprehension in the market.
A closer look at this downward momentum reveals a significant blow of a 20% decrease in the price of BNB, dipping under the $475 support to form a dismal low of approximately $466. The apparent grim outlook reflects intense bearish underpinnings with little to no signs of an impending recovery wave.
At present, any thoughts of recovery seem to be overshadowed by the overwhelming bearish sentiment along with the price dropping below the 23.6% Fibonacci retracement level. This is a result of the downward movement from the $580 swing high to the desolate low of $466.
There still exists a glimmer of hope for a recovery, with the $485 level emerging as a potential adversary. Beyond this, the next level of resistance is nestled just under the $500 mark at $492. A successful climb above the $495 resistance could provide the much-needed respite for the currency, putting its potential rebound value at approximately $520.
However, should the currency fail in its bid to overpower the $492 mark, there is a very real threat of a further depreciation in its value, with potential support on the downside near $465. Below this, the next significant safety net is at $455 and finally the lowest comfort zone stands at $450.
Quite alarmingly, should the downside break extend below the $450 support, the price of BNB could very well spiral downward, threatening to tumble toward the $420 mark. In such circumstances, the usual technical indicators depicting the relative strength index and MACD for BNB/USD both show increased bearish activity, compounded by the major support and resistance levels at $465 and $485 respectively. With such formidable obstacles in play, the forecast for the BNB currency remains a matter of intense speculation and closer analysis.
