Bitcoin News

Why This Support Is The Key For Fresh Increase

Binance Coin Price

BNB price (Binance coin) declined heavily after the FTX collapse against the US Dollar. BNB must stay above the $300 support to start a fresh increase.

  • Binance coin price started a major decline from the $360 resistance zone against the US Dollar.
  • The price is now trading above $300 and the 100 simple moving average (4-hours).
  • There was a break below a major bullish trend line with support near $338 on the 4-hours chart of the BNB/USD pair (data source from Binance).
  • The pair could start a fresh increase if it stays above the $300 support zone.

Binance Coin Price Revisits Key Support

After forming a base above the $280 level, BNB price started a strong increase. The price climbed above the $300 and $335 resistance levels.

The price gained pace after it broke the $350 barrier and the 100 simple moving average (4-hours). Finally, it spiked above the $360 level and formed a new monthly high at $361. Recently, FTX’s drama and collapse dragged the market lower, including ethereum, bitcoin and ripple.

There was a major decline below the $345 and $335 support levels. The price even spiked below the 50% Fib retracement level of the upward move from the $264 swing low to $361 high.

Besides, there was a break below a major bullish trend line with support near $338 on the 4-hours chart of the BNB/USD pair. The price is now consolidating above $300 and the 100 simple moving average (4-hours). An initial support is near the $312 level.

Source: BNBUSD on TradingView.com

The first major support is near the $300 level. It is near the 61.8% Fib retracement level of the upward move from the $264 swing low to $361 high. The next major support is near the $286 level. If there is a downside break below the $286 support, there could be an extended decline towards the $260 support.

Fresh Increase in BNB?

If BNB fails remains stable above $312 or $300, it could start a fresh increase. On the upside, the $330 and $338 levels are immediate hurdles.

The next major resistance is near the $345 level, above which the price is likely to aim a test of the $365 level in the near term. Any more gains might send the price towards the $380 level.

Technical Indicators

4-Hours MACD – The MACD for BNB/USD is losing pace in the bearish zone.

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

Major Support Levels – $312, $300 and $286.

Major Resistance Levels – $330, $338 and $365.

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