Thursday, December 26, 2024
Home > Analysis > BNB Price Steadies Above Support: Is a Bullish Comeback on the Horizon?

BNB Price Steadies Above Support: Is a Bullish Comeback on the Horizon?

BNB price started a recovery wave above the $500 resistance. The price is now consolidating and might aim for more gains above $530.

  • BNB price started a decent upward move from the $472 support zone.
  • The price is now trading above $500 and the 100-hourly simple moving average.
  • There is a key rising channel forming with support at $518 on the hourly chart of the BNB/USD pair (data source from Binance).
  • The pair could extend its recovery wave if it clears the $530 resistance in the near term.

BNB Price Starts Recovery

In the past few days, BNB price saw a decent recovery wave from the $472 support zone, like Ethereum and Bitcoin. The price was able to climb above the $495 and $500 resistance levels.

It even cleared the $520 resistance, but the bears were active near the $530 zone. A high was formed at $529.2 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $471 swing low to the $529 high.

The price is now trading above $520 and the 100-hourly simple moving average. There is also a key rising channel forming with support at $518 on the hourly chart of the BNB/USD pair.

If there is another recovery wave, the price could face resistance near the $530 level. The next resistance sits near the $542 level. A clear move above the $542 zone could send the price higher. In the stated case, BNB price could test $550.

A close above the $550 resistance might set the pace for a larger increase toward the $565 resistance. Any more gains might call for a test of the $580 level in the coming days.

Another Decline?

If BNB fails to clear the $530 resistance, it could start a fresh decline. Initial support on the downside is near the $520 level or the channel trend line.

The next major support is near the $508 level. The main support sits at $500 and the 50% Fib retracement level of the upward move from the $471 swing low to the $529 high. If there is a downside break below the $500 support, the price could drop toward the $485 support. Any more losses could initiate a larger decline toward the $472 level.

Technical Indicators

Hourly MACD – The MACD for BNB/USD is losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BNB/USD is currently near the 50 level.

Major Support Levels – $520 and $500.

Major Resistance Levels – $530 and $542.

Source