BNB is heading downwards as the forming weekly candle opens below the Support Line with the current price of $295. The BNB price is moving below the downtrend line in the long run weekly chart, thus denoting a durable strength in the bearish momentum of the coin.
The previous week’s candle shows a significant price movement while the price closes below the support of $320. The technical parameters on the weekly chart have been in the bearish zone for the past few weeks. BNB shows a descending pattern as its value suppresses the uptrend line and continues to decline.
On the daily chart, the BNB token has taken a bounce from strong long term support around $200. This area has proved to show strong buying in the market. When this level was tested earlier, it took the token price over twofold in around 5 months.
This support aligns directly with an oversold reading on the daily RSI following the RSI moving through the oversold line going upward. It might appear BNB has hit prices attractive enough to take action and start accumulating the coin for an up move.
The more significant observation on this chart though would be that since the token is in a long-term downtrend, the prices would be more inclined to fall on resistance and have a hard time going higher overall.
The immediate resistance seems close from $340 to $320 BNB, and then if prices go higher, the down-trending line falls from Nov 21, which would provide varied resistances depending on the speed at which the market reverses.
The MACD line is yet to give out buy signals as the MACD line is still trailing below the Signal Line. No crossovers have confirmed a possible impending up move. New purchases of the token should be made with caution. Investors’ confidence would increase once BNB prices start to show more prominent signs of its decision to end the current trend.
The bulls can only expect an up-trending market if the token closes above the support line. The technical parameters turn around to the upper zone.
