BNB Price Struggles to Hold $500: Is a Breakout Coming?

BNB

NewsBTCSep 5, 2024 5:45 AM

BNB price is struggling to stay above the $500 support zone. The price could gain bearish momentum if there is a close below the $500 support.

BNB price started a fresh decline from the $540 resistance zone.
The price is now trading below $520 and the 100-hourly simple moving average.
There is a short-term rising channel forming with support at $500 on the hourly chart of the BNB/USD pair (data source from Binance).
The pair could gain bearish momentum if it settles below the $500 support zone.

BNB Price Dips Again

After struggling to test the $540 resistance, BNB price started a fresh decline like Ethereum and Bitcoin. The price declined below the $532 and $520 support levels. There was also a move below $510.

Finally, the price found support at $495. A low was formed at $496 and the price is now consolidating losses. There is also a short-term rising channel forming with support at $500 on the hourly chart of the BNB/USD pair. The pair is now trading below $525 and the 100-hourly simple moving average.

If there is a recovery wave, the price could face resistance near the $518 level. It is close to the 50% Fib retracement level of the downward move from the $538 swing high to the $496 low.

The next resistance sits near the $522 level or the 61.8% Fib retracement level of the downward move from the $538 swing high to the $496 low. A clear move above the $522 zone could send the price higher. In the stated case, BNB price could test $535.

A close above the $535 resistance might set the pace for a larger increase toward the $540 resistance. Any more gains might call for a test of the $550 level in the near term.

More Downsides?

If BNB fails to clear the $522 resistance, it could start another decline. Initial support on the downside is near the $500 level. The next major support is near the $496 level.

The main support sits at $488. If there is a downside break below the $488 support, the price could drop toward the $465 support. Any more losses could initiate a larger decline toward the $450 level.

Technical Indicators

Hourly MACD – The MACD for BNB/USD is gaining pace in the bearish zone.

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

Major Support Levels – $500 and $496.

Major Resistance Levels – $518 and $522.

Reviewed byTony

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