Binance Coin investors have been making almost 800% profit from the turn of the year to date, the recent drop in the market has pushed BNB below initial support. At the time of this writing, BNB is witnessing a rising sell pressure and is trading at $ 310.
1-hour Binance Coin (BNB) price chart
BNB encountered initial resistance at $ 373.27, where it hit an obstacle. The digital asset formed a base at $ 328 but could not hold on to it and fell. Currently, BNB has dropped to $ 311 and could test support at $ 286.
While the high volatility in the market is one of the reasons for the recent decline, the BNB market is under increasing selling pressure. When the asset reversed from testing resistance at $ 373, selling pressure began to rise. Selling pressure is growing as the asset has lost its support recently.
The relative strength indicator also confirmed this. BNB hit the oversold zone while testing the highest resistance suggesting market saturation due to overbought. However, when the price reversed, the RSI fell further. It continued to fall below the equilibrium zone and now selling pressure has taken over the market.
As the price approaches support, the 50 moving average also rises. A transition between the two can accelerate the downtrend of BNB and the momentum can turn negative.
If Binance Coin can’t hold $ 311, the next stop will be close to $ 286. At this point, an entry can help traders make a profit by buying bottom, but please note that this is the view of AMBCrypto analysts.