Binance Coin (BNB) faced new selling pressure after it failed to rise above a major resistance level. This led to a rise in concerns about the potential for further selling pressure in the asset in the short term.
The market is now focusing on major support levels, with the macro environment providing a dampening effect to the asset’s upside potential. The focus is now on whether the asset will manage to find support at its current levels or if the selling pressure will continue.
At the time of writing, BNB is trading at $849.50, recording a 24-hour trading volume of $4.47 billion and a market capitalization of $115.97 billion, according to data from CoinMarketCap. The token has declined 5.18% over the past day, reflecting increasing downside pressure after its latest attempt to push higher was rejected near resistance.
BNB Rejection Signals Further Downside
Crypto analyst CryptoPulse highlighted that the rejection of BNB at the $900 level is a major technical event. The analyst pointed out that the financial markets, which were expected to increase liquidity, did not do so, keeping the interest rates at the same level.
This lack of new capital inflow makes the rejection more significant, which in turn makes a further move down in the near future more likely. CryptoPulse had identified a significant range at $820-$840 as a level where selling strategies might continue to be effective.
Also Read | Binance Coin (BNB) Eyes $980 Breakout as Consolidation Tightens
Binance Coin Finds Support at Key Averages
The analyst also pointed out that there are profitable opportunities that are not necessarily tied to a rising market, since corrective movements in BNB have consistently offered trading opportunities since October, showing that clear levels provide opportunities regardless of whether the markets are going up or down, according to CryptoPulse.
In a wider technical analysis, CryptoPulse used the BNB weekly pullback map to illustrate support levels over time. As part of this, CryptoPulse noted that throughout this market cycle, BNB has been supported around the 50-week moving average in standard pullbacks.
With more pronounced corrections, price action has tended to settle closer to the 100-week moving average. However, if selling pressure continues to build, the range of $710 to $720, which is also near the 100-week moving average, could act as a potential zone of interest in which gradual accumulation could occur in the future.
Also Read | Binance Coin (BNB) Tests Key Support as Price Eyes $980 Resistance Break
