Binance Coin (BNB) Analysis
The recent market activity has witnessed Binance Coin (BNB) breaking below the crucial $297 support level, indicating a strong bearish momentum. Over the course of this week, BNB has exhibited three consecutive days of bearish candles on the daily timeframe, reflecting the prevailing negative sentiment in the overall cryptocurrency market.
Bearish Momentum and Support Level Breakdown
The bearish break beneath the $297 support level signifies a notable shift in momentum for BNB from a previously bullish stance to a bearish one in the short term. In the earlier part of January, buying pressure at the $297 support level successfully repelled sellers. However, the current market sentiment has favored sellers, leading to a daily candle close below the previous support, which has now transformed into resistance.
As a result, the Relative Strength Index (RSI) has fallen below the neutral 50, recording a reading of 44 as of the time of writing. This indicates an increase in selling pressure and a decline in buyer activity. An examination of the Chaikin Money Flow (CMF) reveals that it remains above the zero mark but has experienced a notable drop. This suggests that selling pressure may persist in the short term, as buyers await an opportune moment to initiate a reversal.
Intraday Trading Strategy
For intraday traders looking to capitalize on this shift in momentum, a potential entry point is at the current market price of $292, with a short-term target of 15% gains at $250. Conversely, if bulls manage to rally and reclaim the $297 support level, traders should observe for a bullish candle close above $297 before considering new positions.
This scenario might lead to BNB descending to the $250-$260 zone before experiencing another upward rally.
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