BNB Price Update: Strategies for Rebound as it Falls Below 250 Dollars

Crypto News– Last week, the BNB price saw a significant decline, marking a notable bearish candlestick.

Despite this downturn, BNB’s price is currently above a minor horizontal support area. The question arises: can this support area effectively halt the ongoing decline? A closer look at the technical analysis on the weekly timeframe reveals that in June 2022 (marked by the green icon), the BNB price bounced at a long-term horizontal support area and has been trading above it since.

BNB Price Update: Strategies for Rebound as it Falls Below 250 Dollars

Although the price briefly dipped below this area in July 2023 (indicated by the green circle), it swiftly reclaimed its position, leading to a subsequent increase. Last week, BNB experienced a surge, reaching a peak of $275. However, this growth was short-lived, resulting in a bearish candlestick characterized by a substantial upper wick.

It’s noteworthy that this decline coincided with the resignation of Binance CEO Changpeng Zhao, following a hefty fine of over $4 billion from the U.S. Department of Justice.

Traders often rely on the Relative Strength Index (RSI) as a momentum indicator to assess overbought or oversold conditions and make decisions about asset accumulation or sale. Readings above 50, along with an upward trend, suggest a prevailing advantage for bulls, while readings below 50 indicate the opposite. In this context, the weekly RSI faced rejection at 50, coinciding with the price drop from $275.