BNB (Binance Coin) Price Analysis: Oversold Condition After Dropping Consistently for a Week

Yesterday, BNB's price reached an oversold condition after dropping consistently for a week. However, it has recovered significantly from the latest dip but the trend remains bearish on the daily chart.

BNB’s price dropped consistently for a week and reached an oversold condition yesterday. But, it recovered significantly from the latest dip. However, the trend remains bearish on the daily chart.

With the recent major sell-offs in the crypto space, the bull run was put on hold. Following this, BNB rolled over a week ago and broke through several key support levels. Yesterday, it tested $400, marking its lowest price since March.

This weekly breakdown resulted in a 30% reduction in the value. However, due to a sharp rejection, the price recovered speedily. It is currently changing hands at $490 after a significant increase in the past 24 hours.

Despite this recovery, BNB still appears much more bearish on the daily timeframe. In fact, things might heat up seriously in the coming weeks following a new bearish formation on the weekly timeframe.

If this pattern comes into play, we can expect a bigger price dump in the future until it finds a threshold to foot a new rally. The $300 mark is the main sell target to keep an eye on.

In the latest recovery, there is still room for more increase to the vital $500 level before rolling over again. Activating a strong bullish move from this level should bring a full recovery to the top. But currently, the asset is under the bears’ radar.

BNB Key Level To Watch

While showing signs of strength since yesterday, it may encounter resistance at $508. If it scales through, the next resistance levels to watch for recovery are $553 and $605.6.

At the current trading level, BNB’s closest support is located at $454.7, followed by $427.3 and $400 – the key level that supported the market yesterday. If the price dips below this key level, March’s low would be the next support to watch.

Key Resistance Levels: $508, $553, $605.6

Key Support Levels: $454.7, $427.3, $400

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