Binance Coin suffered rejection before hitting $440 last week. The bearish price action superseded a recovery move from the crash to $210 in May. As sellers regained, the bulls’ focus shifted to securing higher support, perhaps at $400 and $380.
However, declines soared, with Binance Coin plunging below the 100 Simple Moving Average (SMA) and the next tentative support at $340. BNB tested support at $320 on Tuesday before a minor recovery came into the picture.
At the time of writing, the Binance exchange native token is teetering at $338. A bearish cloud is hovering, conceivably due to the hurdle at the 50 SMA on the four-hour chart. Moreover, failure to hold above $340 has triggered more sell orders as bears eye another drop to $320 and $300, respectively.
The four-hour SuperTrend indicator, which follows the trend of an asset while considering the asset’s volatility, has recently presented a sell signal. This call to sell appeared after the chart overlay line flipped above the price and changed from green to red. The signal implies that Ripple is in a bearish trend and traders should consider taking short positions.
XRP/USD four-hour chart
The same bearish outlook has been reinforced by the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). The former is moving fast toward the oversold region, suggesting that the bearish grip is stiffening. Similarly, the MACD has a bearish signal accentuated by the drop below the zero line in addition to the MACD line (blue) increase the divergence under the signal line.
However, it is essential to realize that a four-hour close above $340 may see market stability return. Moreover, gaining ground past the 100 SMA will validate recovery toward $400.
Binance Coin intraday levels
Spot rate: $338
Resistance: $340 and the 100 SMA
Support: $320 and $300
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.