End Of The Road For BNB After 200% Surge? Mounting Resistance Threatens Rally
17 May 2024 - 9:00AM
NEWSBTC
BNB, the native cryptocurrency of the BSC network, has undoubtedly
been one of the winning altcoins scene the bull market began. The
price has been able to go from around $200 to over $600 in the
space of a year, notching over 200% gains in the process. However,
it seems that this outperformance by the altcoin is coming to an
end, as an analyst predicts that it is about to hit massive
resistance that could stop its growth dead in its path. BNB Headed
For Mounting Resistance In an analysis that was shared on the
TradingView website, crypto analyst Trade City Pro revealed that
the BNB token might have to fighting massive resistance soon. The
analyst points out that this is a culmination of the bullish rally
that the altcoin has seen in the last year, and now bears are maki
g their stand. Related Reading: Bitcoin Analyst Reveals Why $57,938
Is The Level To Watch This Week The analyst points to Bitcoin’s
performance during this time as something that could help to
pinpoint where the BNB price is headed next. As they explain, BNB
risks falling into correction and consolidation after that, making
its current level a perilous one for investors. Mainly, the crypto
analyst credits the altcoin’s performance from here on what Bitcoin
does next. BNB, which is currently the 4th-largest cryptocurrency
by market cap, mirrors Bitcoin’s movements to a larger extent
compared to smaller altcoins. So, Trade City Pro’s analysis with
respect to Bitcoin is not far off. For confirmation of whether the
BNB token continues to be something to sell or hold, the analyst
places the ultimate decision around the $48,000 level for Bitcoin.
They explain that a dump below $48,000 would be a sell signal.
However, if the Bitcoin price were to maintain strength above
$48,000, then they would continue to hold the altcoin. What Happens
In The Event Of A Price Crash? Should the BNB price crash from
here, the crypto analyst has prepared an action plan that could
help investors take advantage of it. For example, a Bitcoin crash
below $48,000 could send the BNB price below $400, and at this
level, the analyst believes buying would be a good move. This is
what the analyst refers to as the “Potential Re-Entry” point. Then,
for “Entering After Resistance,” the analyst advises investors to
buy the altcoin if the price is able to reclaim $616 and stay above
it. This level is important because the $616-$660 range is
identified in the analysis as a significant resistance zone, and so
beating it is important for the BNB price to continue its rally.
Related Reading: How High Can The XRP Price Go? Crypto Analyst
Unveils 6-Month Prediction Additionally, Trade City Pro adds that
the Fibonacci Retracement Levels might offer a level for re-entry
into the altcoin. “In case of a correction, the key Fibonacci
levels from the last upward wave at 0.5 and 0.618 (between $394 to
$430) might offer good entry points. Wait for a reaction or
momentum change at these levels before entering,” they stated.
Lastly, the analyst points out that BNB has not really followed the
broader market in recent times, which could mean something is
coming. “It’s intriguing that BNB seems relatively unaffected by
broader market conditions, suggesting Binance might be positioning
for something unique,” Trade City Pro said in closing. Chart from
Tradingview.com
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