Binance Coin Loses $500 Support as Sellers Breach More Demand Zones

Binance Coin (BNB) price comes under selling pressure again after losing $500 support. The cryptocurrency has fallen to the previous low of $462. This was the low of the price drop on December 4.

In the December 4 price drop, the bulls bought the dips and continued the consolidation above the $500 support. In the second one, the bears are retesting the current support to break it. Breaking through the $500 support gave the bears an edge and sent the BNB price down to the $436 low. Selling pressure will continue to the $394 low if $436 support is broken. Nonetheless, the cryptocurrency could continue to fall to the other lows. Today, BNB is trading at $462.10 at the time of writing.

Binance Coin indicator reading

The cryptocurrency has fallen to level 31 on the Relative Strength Index for period 14. This indicates that the market is approaching oversold territory. The market will decline as long as the price bars are below the moving averages. The BNB is below the 20% area of the daily stochastic. The market has reached its bearish exhaustion. Selling pressure is likely to end when the market reaches the oversold area.

Technical indicators:  

Major Resistance Levels – $700 and $750

Major Support Levels – $400 and $350

What is the next direction for BNB?

Binance Coin has resumed its downtrend. The cryptocurrency is facing a rejection at the high of $520. Meanwhile, the downtrend from November 18 has shown a candle body testing the 50% Fibonacci retracement level. The retracement suggests that BNB will continue to fall to the 2.0 Fibonacci Extension level or $365.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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