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BNB, the native cryptocurrency of the Binance exchange, has recently seen a notable correction in its price, dipping below the $580 threshold. This correction marks a significant moment for traders and investors alike, as BNB struggles to reclaim its position above the $590 resistance zone. This downward trend mirrors movements seen in other major cryptocurrencies like Ethereum and Bitcoin, highlighting a broader market correction. The price of BNB began facing resistance after failing to sustain above the $600 zone, leading to a downward adjustment that placed it below the critical $590 mark and the 100-hourly simple moving average. Despite this setback, the currency managed a brief resurgence, breaking through a connecting bearish trend line at $585 on the hourly chart, signaling a potential reversal if it maintains momentum above the crucial $590 level.
This recent downturn came after BNB’s attempt to secure gains above the $605 mark, sparking a correction that drove its value below not only the $590 and $585 support levels but also dipping beneath the $580 and $575 levels. Even more, the price plunged below the $572 benchmark before a bullish intervention near $590 initiated recovery. This uptick saw BNB claw back above the $575 level, touching the 50% Fibonacci retracement level from its descent from the $598 high to the $565 low. This recovery was further signified by the overcoming of a bearish trend line with resistance at $585 on the BNB/USD pair’s hourly chart, presenting a scenario where BNB is battling to surpass the $590 mark and the 100-hourly SMA for a more substantial rebound.
In terms of future projections, if BNB manages to sustain a fresh increase, it may encounter resistance around the $590 level or even the 76.4% Fibonacci retracement level of its recent downward journey from the $598 high to the $565 low. Success in breaching the $598 resistance could potentially open the door for further gains, paving the way for BNB to test the $605 level and possibly aim for higher resistances at $620 and $632 in the near term. However, the path to recovery entails overcoming these crucial resistance levels to affirm a bullish trend.
Conversely, should BNB fail to navigate past the $590 resistance, another descent might be on the horizon. Initial support is found near the $585 level, followed by significant support at $582 and the pivotal $572 mark. A breakdown below this critical support could lead BNB towards the $565 level, and any subsequent losses might trigger a more profound decline towards $550. Current technical indicators, including the Hourly MACD and the Relative Strength Index (RSI), suggest a waning bullish momentum with the RSI hovering near the 50 level. As BNB treads through this uncertain terrain, the forthcoming periods will be crucial in determining whether the bulls can indeed reclaim lost ground and push the price beyond the coveted $600 threshold.
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