BNB Faces Major Resistance After 200% Surge
BNB, the native cryptocurrency of the BSC network, has been a standout performer in the altcoin scene since the bull market began. The price has skyrocketed from around $200 to over $600 in the past year, achieving gains of over 200%. However, it appears that this impressive run might be nearing its end as an analyst predicts significant resistance ahead that could halt its growth.
BNB Headed For Mounting Resistance
In an analysis shared on TradingView, crypto analyst Trade City Pro revealed that BNB might soon face substantial resistance. According to the analyst, this resistance marks the peak of the bullish rally that the altcoin has experienced over the past year, with bears now taking their stance.
The analyst highlights Bitcoin’s performance during this period as an indicator of BNB’s potential trajectory. They explain that BNB is at risk of entering a correction and consolidation phase, making its current level a precarious one for investors.
Primarily, the analyst attributes BNB’s future performance to Bitcoin’s next moves. BNB, the fourth-largest cryptocurrency by market cap, closely follows Bitcoin’s movements more than smaller altcoins. Thus, Trade City Pro’s analysis regarding Bitcoin is crucial.
To determine whether to sell or hold BNB, the analyst places the critical decision point around the $48,000 level for Bitcoin. They note that a dip below $48,000 would be a sell signal. Conversely, if Bitcoin maintains strength above $48,000, they would recommend holding BNB.
What Happens In The Event Of A Price Crash?
If the BNB price crashes, the crypto analyst has devised a strategy for investors to capitalize on the situation. For instance, a Bitcoin drop below $48,000 could push BNB’s price below $400, at which point the analyst suggests it would be a good buying opportunity, referring to this as the “Potential Re-Entry” point.
- Potential Re-Entry: Buy BNB if the price drops below $400.
- Entering After Resistance: Purchase the altcoin if it reclaims $616 and stays above it. The $616-$660 range is a significant resistance zone, and surpassing it is crucial for BNB’s continued rally.
Additionally, Trade City Pro points out that Fibonacci Retracement Levels could provide re-entry points for the altcoin. “In case of a correction, the key Fibonacci levels from the last upward wave at 0.5 and 0.618 (between $394 to $430) might offer good entry points. Wait for a reaction or momentum change at these levels before entering,” they stated.
Lastly, the analyst mentions that BNB has recently diverged from broader market trends, which could indicate something unique is on the horizon. “It’s intriguing that BNB seems relatively unaffected by broader market conditions, suggesting Binance might be positioning for something unique,” Trade City Pro concluded.
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