BNB Price Drops After BUSD Crackdown, Upsides Turn Attractive to Bears
BNB price (Binance coin) started a strong decline against the US Dollar after BUSD’s crackdown. BNB traded below $300 and is now showing bearish signs.
- Binance coin price started a fresh decline below the $300 support against the US Dollar.
- The price is now trading below $320 and the 100 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $305 on the 4-hours chart of the BNB/USD pair (data source from Binance).
- The pair could correct higher, but upsides might be limited above the $305 and $310 levels.
Binance Coin Price Drops Over 10%
This week, BNB price saw a strong bearish reaction from the $320 resistance zone. The New York Department of Financial Services ordered Paxos Trust Co. to stop creating more of its BUSD token.
It sparked a bearish wave in BNB and the price declined below the $300 support zone (also sparking bearish moves in bitcoin and ethereum). The price even spiked below the $285 support zone. A low is formed near $283 and the price is now consolidating losses. It is trading below $320 and the 100 simple moving average (4-hours).
On the upside, an immediate resistance is near the $292 zone. It is near the 23.6% Fib retracement level of the downward move from the $321 swing high to $283 low.
The next major resistance is near the $300 level. There is also a key bearish trend line forming with resistance near $305 on the 4-hours chart of the BNB/USD pair. The trend line is near the 50% Fib retracement level of the downward move from the $321 swing high to $283 low.
Source: BNBUSD on TradingView.com
A clear move above the trend line might send the price towards the $320 resistance. Any more gains might send the price towards the $335 level.
More Losses in BNB?
If BNB fails to clear the $300 resistance, it could continue to move down. An initial support on the downside is near the $285 level.
The first major support is near the $282 level. The next major support is near the $275 level. If there is a downside break below the $275 support, there could be an extended decline towards the $250 support.
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 – $285, $282 and $265.
Major Resistance Levels – $300, $305 and $320.
