Binance Coin (BNB) is striving to recover from its recent slump and surpass the $230 mark against the US Dollar. Currently, the price is trading below $280 and the 100 simple moving average (4 hours), indicating a challenging road ahead.
However, there is a glimmer of hope as a significant development occurred on the 4-hour chart of the BNB/USD pair. A crucial bearish trend line with resistance near $230 was broken, potentially opening doors for further gains. This encouraging breakthrough stems from data from Binance, a leading cryptocurrency exchange.
Nonetheless, numerous obstacles lie ahead for BNB. The price may encounter hurdles around the $268 and $270 levels, which could slow down its recovery momentum. This past week, BNB substantially declined from its lofty heights above $280. The downward trend persisted as the price steadily dipped below the $250 support zone, putting pressure on BNB and major cryptocurrencies like Bitcoin and Ethereum.
During this decline, the price even tested the $220 support zone, reaching a low of approximately $220.6. However, there is a glimmer of hope as the price gradually increases. It surpassed the $230 resistance level, propelled by bullish forces. The bulls’ determination pushed the price beyond the 23.6% Fibonacci retracement level, calculated from the swing high of $317.0 to the swing low of $220.6.
Moreover, another significant breakthrough occurred on the 4-hour chart of the BNB/USD pair. A key bearish trend line, previously acting as a barrier, was successfully breached near $230. Despite these positive developments, it’s worth noting that BNB is still trading below $280 and the 100 simple moving average (4 hours), suggesting that caution is still warranted.
Looking ahead, BNB faces resistance around the $255 level, with the subsequent major obstacle near $268. This resistance level aligns closely with the 50% Fibonacci retracement level, calculated from the swing high of $317.0 to the swing low of $220.6. A decisive move above these resistance levels, particularly $268 and $270, could initiate a steady upward climb. The next significant resistance awaits near $280, beyond which the price might surge toward the $300 resistance mark.
However, failure to surpass the $268 resistance could trigger another downturn for BNB. Initially, support on the downside can be expected near the $240 level, followed by a major support level around $230. A breach of this support could lead to an extended decline towards the $220 mark. Further losses could lower the price, possibly targeting the $200 support level.
Looking at the technical indicators, the 4-hour MACD for BNB/USD shows bullish momentum, gaining pace in the positive zone. Additionally, the 4-hour RSI (Relative Strength Index) stands above the 50 level, indicating the positive sentiment in the market.
In summary, Binance Coin is striving to recover and surpass the $230 level against the US Dollar. Although significant obstacles lie ahead, recent breakthroughs and positive technical indicators suggest the potential for further gains. Traders should closely monitor resistance levels at $255, $268, and $270, while keeping an eye on support levels at $240, $230, and $220.
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