Will BNB Continue To Drop Or Bounce Back To Create A New All-Time High?
03 February 2024 - 11:10AM
NEWSBTC
BNB, the native token of the Binance Smart Chain, experienced a
drop on Friday, showing a huge red candlestick after opening at
around $305 and moving downward toward $297.93. This downward move
began with a rejection at $312.53 on Wednesday, thereby creating
resistance at the same level. At the time of writing, the price
still shows strong signs of moving downward to its previous support
level of $300. If this support level is unable to hold, then the
price might continue downward to the next support level at $263.93.
But, if the support does hold, we might see the price bounce back
and move upward to create a new high for the year. However, the
price is still above the 100-day moving average, which is usually a
bullish sign for the price. Technical Indicators Point Toward
Sustained Downtrend For BNB To figure out where the BNB price might
be headed next, several indicators can be used to examine the
chart; Related Reading: Here Are The Largest Institutional Buyers
Of Bitcoin This Week 4-Hour MACD: We can see that the histogram is
below the zero line, thereby suggesting a downward trend.
SOURCE: Tradingview We can also see that the MACD
line has crossed below the signal line, pointing toward a sustained
bearish trend. 1-Day MACD: From the daily chart, we can confirm
that both the MACD line and signal line have crossed and are
heading toward the zero line, while the histogram is already below
the zero line, indicating further downward movement.
SOURCE: Tradingview 4-Hour Alligator Using the
alligator indicator to examine the chart on the 4-hour timeframe,
we can see that the jaw, the teeth, and the lips are all facing
downward and are separated from each other. This has historically
been a bearish signal and suggests further downward momentum.
SOURCE: Tradingview 1-Day Alligator: Also,
looking at the alligator indicator from the daily chart, it can be
seen that the alligator lip [green line] and the teeth [red line]
are showing signs of cross over the jaw [blue line], suggesting a
downward movement SOURCE: Tradingview Final Thoughts Although
the MACD and the Alligator are popular indicators, it should be
noted that they are not infallible, and traders frequently combine
them with other technical analysis tools to help them make better
trading decisions. Related Reading: Bitcoin To $5 Million?
S2F Model Predicts When This Will Happen Furthermore, false signals
can happen, particularly in erratic or sideways markets, so it’s
critical to take the larger market context into account. Token
price struggles to hold support at $300 | Source: BNBUSD on
Tradingview.com Featured image from Dall.E, chart from
Tradingview.com
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