Altcoin
End of the road for BNB after 200% increase? Growing resistance threatens the rally
BNB, the native cryptocurrency of the BSC network, was undoubtedly one of the winning scenes of altcoins initiated by the bull market. The price managed to go from around $200 to over $600 in the space of a year, achieving gains of over 200%. in the process. However, it appears that this altcoin outperformance is coming to an end, as one analyst predicts that it is about to encounter massive resistance that could stop its growth in its tracks.
BNB headed towards rising resistance
In an analysis that was shared on the TradingView website, crypto analyst Trade City Pro revealed that the BNB token may soon have to fight massive resistance. The analyst points out that this is the culmination of the bullish rally the altcoin has seen over the past year, and now the bears are taking a stand.
The analyst points to Bitcoin’s performance during this period as something that could help pinpoint the next direction of BNB price. As they explain, BNB risks falling into the correction and consolidation phase subsequently, making the current level dangerous for investors.
Mostly, the crypto analyst credits the altcoin’s performance from here on out what Bitcoin does next. BNB, which is currently the fourth largest cryptocurrency by market capitalization, reflects the situation The movement of Bitcoinnts to a greater extent than smaller altcoins. So, the analysis of Trade City Pro compared to Bitcoin is not far off.
To confirm whether the BNB token continues to be something to sell or hold, the analyst places the final decision around the $48,000 level Bitcoin. They explain that a drop below $48,000 would be a sell signal. However, if the price of Bitcoin were to remain above $48,000, then they would continue to hold the altcoin.
What happens in the event of a price collapse?
If BNB price drops from here, the crypto analyst has prepared an action plan that could help investors take advantage. For example, a Bitcoin drop below $48,000 could send BNB price below $400, and at this level, the analyst believes that buying would be a good move. This is what the analyst calls the “Potential Reentry” point.
So, for “Enting After Resistance,” the analyst advises investors to buy the altcoin if the price is able to recover $616 and stay above it. This level is important because the $616-$660 range is identified in the analysis as a significant resistance zone, so breaking above it is important for the market. BNB price to continue his demonstration.
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Furthermore, Trade City Pro adds that Fibonacci retracement levels could offer a level for re-entry into the altcoin. “In case of a correction, the key Fibonacci levels of the latest bullish wave between 0.5 and 0.618 ($394 to $430) could offer good entry points. Wait for a reaction or change in momentum at these levels before entering,” they said.
Finally, the analyst underlines it BNB hasn’t really followed the broader market lately, which could mean something is coming. “Interestingly, BNB appears relatively unaffected by broader market conditions, suggesting that Binance may be positioning itself for something unique,” Trade City Pro said in closing.
Chart from Tradingview.com